Avenor Rural Bank makes strides

Akatsi (V/R), Aug. 24, GNA - The Avenor Rural Bank at Akatsi last year obtained the GHC150, 000 minimum capital requirement set by the Bank of Ghana for Rural and Community Banks (RCBs).

It has also, the first time in years, declared a GHC18, 677.94 share dividend at GHC0.0020 per share, after gaining GHC 85,655 profit before tax, a 16% growth over the GHC73, 877 made the previous year.

Mr. Peter Samlafo, the Chairman of the bank's Board of Directors, said this at the bank's 27th Annual General Meeting at Akatsi.

The bank's assets grew 39% to GHC2, 705,690 last year from GHC1, 949,892 in 2008, while deposits increased GHC1, 674,722, or 38%, from GHC1, 252, 426 the year before.

Loans shot up by 39%, GHC1, 398,576 from GHC1, 007,301 in 2008, with shareholdings increasing 54%, from GHC250, 591 to GHC385, 856 last year and stated capital went up GHC150, 847, representing 123% from GHC67, 768 in 2008.

"The bank's financial health is good, having met and exceeded the BoG-set performance requirements including the primary and secondary reserves", he said.

Mr. Samlafo appealed to shareholders and clients to help expand the bank's capacity by increasing holdings and savings so it could engage in activities more effectively such as the support for agriculture in the area, which got GHC89, 970 as loans last year as against GHC69, 808 in 2008.

Mr. Newton Mati, Manager in charge of Risks and Business Development Unit, ARB Apex Bank, commended the bank and RCBs in general for their improved showings.

He described the impressive performances in Deposit Mobilisation and some significant increases in their share capitals as indications of growing public confidence in them, but cautioned against complacency.

Mr Mati said the banks needed to do more in terms of organisational and operational restructuring, Deposit Mobilisation and Credit Administration, Cost Control and Reduction to shore up themselves against competition and turbulent times.

He proposed to RCBs to consider mergers with sister banks to make themselves competitive for more effective service delivery and added that his outfit had received two merger applications from some banks in the Western and Central regions.