Nwabiagya Rural Bank sees a dip in profit

Nwabiagya Rural Bank saw a dip in profit last year, as returns on its operations dropped to GHC2,296,367.00 from the year 2013 figure of GH¢2,415,570.00.

Nana Owusu Sarfo Anwona, the Chairman of the Board of Directors, said the unfavourable business environment - high inflation, frequent power outages and high utility charges, was to blame.

He was addressing the 27th annual general meeting of shareholders of the bank at Barekese in the Atwima-Nwabiagya District.

He said despite the negative profit growth, it showed strong performance in savings mobilization with total deposits hitting GHC46,891,334.00 from the previous total of GH¢39,596,830.00.

At the same time the bank’s investments rose from GHC17,050,000.00 to GHC24,045,447.00.

Nana Anwona said there was also significant increase in both assets and capital adequacy ratio, during the period.

Total assets stood at GHC62,374,810.00 as against GHC53,393,199.00 in 2013, whiles its share capital shot up to GHC1,839,428.00 from GH¢1,650,909.00.

He told the owners of the bank that the size of loans and advances granted to customers, however, reduced from GHC24,381,766.00 to GH¢24,299,384.00.

He said as good corporate citizen, it continued to provide assistance by way of scholarships award to students, support to education and health institutions, as well as community development programmes.

The Board recommended dividend payment of GH¢0.035 per share. Mr. Kwadwo Aye-Kusi, Managing Director, ARB Apex Bank, in an address read on his behalf, asked rural banks to operate strictly within the banking regulations and avoid conflict of interest to sustain depositors’ confidence.

They should take steps to strengthen their credit management structures to make their “loan books healthy”, he added.

Nana Asare Bediako, the Atwima-Nwabiagya District Chief Executive (DCE), praised the bank for its efforts at helping to improve the livelihood of the people in its operation area, citing its support to the development of education and health alongside other social interventions.

Nana Dr. Akowua Boamah, President of the Ashanti Chapter, Association of Rural Banks, encouraged rural banks to live up to their corporate social responsibilities.