Business News of 2014-08-26

Enyan Denkyira bank makes significant gains

Enyan Denkyira Rural Bank Limited has recorded significant gains in its financial items for the year ended December 31, 2013, compared with the previous year’s performance, the Chairman of the Board of Directors, Dr William Panford Bray, has said.

In his report at the bank’s 32nd annual general meeting (AGM) held at Ajumako last Saturday, the board chairman said “we performed well due to a combination of factors, including a steady growth in our current and savings accounts balances, a fairly significant growth in asset portfolio yield and more prudent management of operational cost.”

Dr Bray said the operating income for the year under review was GH¢1.32 million, as against an expenses of GH¢1 million compared with the income of GH¢0.96 million and expenses of GH¢0.78 million for 2012.

He noted that the bank made a profit-before-corporate-tax of GH¢247,983, giving a percentage increase of 142.47 over the previous year’s profit of GH¢102,275.

According to him, the net profit for 2013, “after charging all to expenses, depreciation and taxation, was GH¢221,383” and this was against the 2012 figure of GH¢87,851, showing 152 per cent increase.

The bank’s total asset grew from GH¢4.77 million in 2012 to GH¢5.80 million in 2013, representing 22 per cent increase.

For liabilities, the bank recorded GH¢4.68 million for 2013 as against GH¢3.83 for 2012.

The bank’s stated capital hit GH¢ 385,426 for 2013 as against GH¢ 377,618 for 2012.

Dr Bray announced a dividend of GH¢0.0139 per share, which amounts to GH¢70,000 and underscored the need to increase the stated capital as a proactive move.

He, therefore, asked shareholders to reinvest at least 50 per cent of their dividend to increase shareholders’ value.

The Assistant Director at the BoG Supervision Department of BoG, Mr K.S. Osei-Bonsu, commended the bank for its “impressive performance”, saying, “total assets of RCBs stood at GH¢1.9 billion, which constitutes about 4.2 per cent of total assets of the banking industry as of the end of May 2014.”

The Managing Director of ARB Apex Bank Ltd, Mr Kwadwo Aye Kusi, stressed the need for continuous training of bank staff to upgrade their knowledge and skills to enable them to fit in the information and communications technology-based environment.

In an address delivered on his behalf by Mr Benjamin Chemel, the Deputy Head, Finance of the Apex Bank, the MD asked community and rural banks to emphasise customer care, training, risk management and deposit mobilisation “to help your bank withstand the storm of competition in the banking front today.”

Besides shareholders, others present at the AGM were chiefs and other traditional leaders, representatives of rural banks, the district education directorate, the district assembly and heads of senior high schools in the Ajumako area.

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