Abokobi Rural Bank makes profit

The Abokobi Area Rural Bank (AARB) has posted a net profit of GH¢349, 243 for 2013 and has, subsequently, declared a dividend of GP 3.23 per share.

This represents an increase of 37.3 per cent over last year’s profit of GH¢ 254,379.

Nii Afutu Brempong III, Chairman of the board of directors, made the announcement at the bank’s 22nd Annual General Meeting, on Saturday, at Abokobi, the capital of Ga East Municipality.

The Chairman said it was significant that the success was chalked against the backdrop of the stiff competition in the industry, especially, from commercial banks, who were now claiming new territories in rural areas.

The bank’s deposit, Nii Brempong said, grew by 42.4 per cent to GH¢1,168, 470 in the year under review as against the 2012 achievement of GH¢ 820,411.00.

Additionally, the bank upped its short-term investments by 27 per cent to GH¢2,547,752 from GH¢ 2,005,058, he said, as it extended loans to progress businesses in cottage industry, agriculture, transport, commerce and others.

Nii Afutu Brempong, who is also the Chief of Damfa, assured the bank’s shareholders that the managers would work diligently to make gains on their investments so they should back them up with the purchase of more shares to shore up their stated capital to be able to meet any increment that may be announced by the Central Bank.

Nii Brempong said the bank had also been alive to its Corporate Social Responsibilities thus supporting the Echoing Hill Village at Madina with its rehabilitation project, and the upkeep of people with disabilities.

It had also supported the Ga East Municipal and La Nkwantanang Madina Municipal Assemblies to undertake some programmes, he said, while its scholarship scheme for the brilliant but needy students was still open.

Mr Kwadwo Aye Kusi, Managing Director of ARB Apex Bank- the supervisory body of rural and community banks- commended the pioneer rural bank for its role model status.

The AARB, which has five branches, has been rated among the best in the performance funds transfer with regard to Western Union, Money gram and I-Trans.

Mr Kusi, whose address was read by the Head of Projects and Credits of Apex Bank, Mr Richard Mettle, warned rural and community banks to be alert against the operations of fraudsters and institute effective measures to curtail risks.

“The banking business has become competitive and risky…the need for effective risk management and vigilance have become more pressing in view of the technological intervention in the operations of rural and community banks,” he stated.

The supervisory bank, Mr Kusi said was, however, piloting a scheme under which some of the banks were using a computerized platform to transact businesses such as transfers, payments, checking of balances and SMS alerts through mobile phones.

This, he said, formed part of the strategies to get rural and community banks to maximize the advantages offered by Information and Communication Technology (ICT) to improve their services and products towards making peak profits

He, therefore, urged the banks to update the skills of their employees to meet any challenges they might encounter concerning regulation, technology, competition, governance and customer expectation.

The banks, he advised, must prioritize customer service by making their staff sign to deliver on that front in their engagement contracts.