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Business News Sat, 28 Aug 2010

Adonten Community Bank net profit shoots up 122%

Akyem Tafo, Aug. 28, GNA - The Adonten Community Bank at New Tafo made 122 percent increase in net profit last year posting GH¢141,249 that year as against GH¢63,673 in 2008.

Total assets of the bank also rose from GH¢2,578,000 in 2008 to GH¢ 3,104,000 in 2009, representing an increase of 20 per cent.

Dr Emmanuel Appiah-Korang, Chairman of the Board of Directors, who announced this at the 12th Annual General Meeting of the bank at New Tafo on Saturday, said the bank's net worth increased by 48 per cent from GH¢ 380,000 in 2008 to GH¢562,000 in 2009.

He said total deposits of the bank rose from GH¢1,952,000 in 2008 to GH¢2,325,000 in 2009, which represented 19 percent increase.

Total investments rose from GH¢496,000 in 2008 to GH¢802,000 in 2009, representing 62 per cent.

Dr Appiah-Korang further announced that total loans and overdraft granted during the year under review amounted to GH¢1,610,000 compared to GH¢1,149,600 in 2008, resulting in an increase of eight percent.

He said stated capital of the bank increased from GH¢80,815 in 2008 to GH¢179,605 last year following a resolution of shareholders to transfer an amount of GH¢80,815 from Shareholder Funds to stated capital with a correspondence issue Bonus shares to shareholders.

Dr Appiah-Korang said recovery of delinquent loans had become a major challenge and said in 2009, a special effort was made to improve the quality of loans and at the same time, intensify loan recovery.

"This resulted in a 33 percent reduction in the provision for bad debt over the previous year even though there was a marginal increase in loans and overdrafts granted over the same period."

"The total provision for bad loans at the end of 2009 was GH¢ 156,789, equivalent to 87 percent paid-up capital of the bank".

He said the situation was unacceptable adding that all means would be employed in the recovery of delinquent loans.

Dr Appiah-Korang said since 2005 the bank had not declared dividends to shareholders but announced an amount of GH¢1.25 per share for the 2009 operating year.

He said in addition to staff training, the remuneration of staff was reviewed upwards last year in order to retain the existing staff and also to attract high caliber personnel.

On community and social responsibility programs, the board chairman said the bank continued to support communities, institutions and individuals in its catchments.

"The bank supported the water project for Maase clinic and also sponsored East Akyem Municipal Assembly best youth farmer".

Source: GNA