Dumpong Rural Bank posts 250% growth in profit

The Dumpong Rural Bank Limited at Asakraka Kwehu in the Kwehu South District of the Eastern Region has posted impressive operational performance in the 2012 financial year under review.

The Bank has recorded a remarkable net profit before tax of approximately GH¢319,000 in 2012 against GH¢91,645.00 in 2011, representing unprecedented growth of 248.16%.

The deposits of the bank continue to rise steadily as compared to the previous year. During the year under review deposits went up by GH¢1,487,118.00, representing 38% growth over the previous year.

The Chairman of the Board of Directors Emmanuel G.K. Bonnah made this known at the Bank’s 18th Annual General Meeting held recently at Asakraka Kwehu.

According to the Board Chairman, the world economy in 2012 was a difficult place with the financial markets experiencing considerable levels of volatility, liquidity-stress, and increasing investor risk aversion.

The Ghanaian economy, however, continued to show great prospects for growth amidst challenges with the local currency.

Real GDP growth was 8.1% as compared to 14.4% in 2011. This puts Ghana as one of the fastest-growing economies.

Inflation remained at single-digit, ranging between 8.6% and 9.5% and ending the year at 8.8%.

During the year under review the cedi depreciated by 13.7% as at the year-end. As a result of this development, interest rates on Treasury-bills went up - hence the Bank’s increase in investment.

Total loans of approximately GH¢3 million were granted to customers of the Bank as against a little over GH¢2.1 million the previous year, representing 44% growth.

Total assets of the Bank increased from about GH¢4.4 million in the year 2011 to GH¢6,504,665.00 in the year 2012, representing a 49% increase.

Treasury-bill investments of the Bank stood at GH¢1.6 million at the year ending 2012 as against GH¢800,000, which represents 100% growth.

The bank has moved from a negative capital adequacy position of 4.81% inherited over the years into a positive position of 3%. Though this was not up to 10% required by Bank of Ghana, it was however a huge success for the bank.

The shareholders have been urged to buy more shares to help position the Bank to expand its operations in the coming years, and to enable it to begin paying dividends.

The bank’s share capital position as at the end of the year stood at GH¢161,865.00 as against GH¢153,518.00 in the year 2011. Shareholders have therefore been advised to double their efforts by purchasing more shares, since the rural banking industry envisages an upward review of the stated capital requirement very soon.

In an exclusive interview, the General Manager of the bank, Mr. Jasper Awuku Ahadzi, told Business & Financial Times that the Bank is now financially well-positioned to give customers the very best of service.

He has therefore told customers of the bank to have confidence in the board and management since they are poised to serve them with a lot more tailor-made lending products to bring financial comfort to its cherished customers.

The board chairman in his concluding remarks expressed his sincere appreciation to the bank’s cherished customers, shareholders, the entire staff and management for their support, dedication and hard work which has brought the Bank to its present state.

By Seth KRAMPAH, Asakraka Kwehu