Fiaseman Rural Bank posts strong growth

The Fiaseman Rural Bank Limited at Bogoso in the Prestea Huni-Valley District of the Western Region has posted very progressive results in all the financial indicators in the 2014 year under review.

With the Bank’s primary objective to continue to remain committed to providing superior returns to its shareholders, the Board of Directors of the Bank has recommended a total dividend payout of GH¢606, 922 as against last year’s amount of GH¢532, 971 representing 23% of 2014 net profit.

The dividend per share in the 2014 year under review is GH¢0.051 compared to GH¢0.02 paid in 2013 representing a remarkable growth of 155%.

In spite of challenging economic environment in which the Bank operated in the year under review, Fiaseman Rural Bank posted a pre- tax profit of a little over GH¢2.8 million compared to approximately GH¢2.5million recorded in 2013.

Total deposit liabilities increased from GH¢30,108,802 in 2013 to GH¢ 33,806,562 with investments increasing by 15% from about GH¢15.3million to approximately GH¢18m. Investments in government securities accounted for 60% of total investment.

This is part of the Bank’s prudent decisions to comply with regulatory requirements and also to maximize returns to stakeholders.

The Chairman of the Board of Directors Nana Amanfo Edu VI announced this at the Bank’s 27th Annual General Meeting held last Saturday at Bogoso.

According to him, the year under review was a very challenging one; the Ghanaian local economy recorded a provisional GDP growth of 4.2% as against real GDP growth of 7.4% in 2013. The erratic power supply did not only decrease aggregate productivity but also impacted negatively on the overall cost of production.

Export receipts from cocoa and gold dipped as a result of the fall in the world market price of these commodities. The Board Chairman mentioned for example that, Gold prices recorded a steady fall ending the year 2014 at USD 1264.99 per ounce compared to USD 1530.88 in 2013; representing a fall of 21%. This obviously affected the operations of the Bank as the operating environment is heavily driven by mining activities.

In spite of the above challenges, the Bank was able to put up an impressive operational performance in the 2014 year under review as shown in the graph.

The Bank continues to remain committed to its corporate social responsibilities. In fulfillment of this, Fiaseman Rural Bank has supported the less privileged, by giving hope to the needy through educational support. Other institutions and local communities within the Bank’s operational territories have also benefited. The Bank made a total commitment of GH¢43, 270 to various beneficiaries, in the area of education, security and health among others.

The General Manager of the Bank, Mr Evans Aidoo in an interview with journalists, he said he and his management team would continue to pursue policies aimed at maximising more profits and giving exceptional customer satisfaction.

He emphasised that the Bank would continue to pursue a massive share and deposit mobilisation, follow stringent cost reduction policies, strengthen internal control measures and develop the human capital to meet demands of functioning profitability in the competitive rural banking environment.

Evans Aidoo – GM Nana Amanfo Edu VI – Board Chairman