Otuasekan Rural Bank posts 46% growth in profit

Otuasekan Rural Bank Limited at Kofiase in the Sekyere West District in the Ashanti Region has posted yet another impressive growth in all financial indicators for the 2012 year under review.

The bank’s net profit before tax grew from GH¢411,519 in 2011 to GH¢599,331 in 2012. This achievement showed a growth of 45.64% over the previous year’s performance.

The Chairman of the Board of Directors, Dr. Nana Akowuah Boamah, made this known at the bank’s 24th Annual General Meeting of shareholders held last Friday at Kofiase.

The Bank registered a satisfactory growth in all the financial indicators in spite of the very challenging macro economic environment in which the Bank operated during the 2012 period under review.

According to the Board Chairman, the year under review was quite a difficult one because of a number of challenges posed by the operating environment. Notable among these were the spillover effect of the global economic downturn and the falling interest rates on the market. Besides, the bank faced very stiff competition from the already-known traditional and foreign banks which have opened branches in the Bank’s operational territories.

In spite of the challenges mentioned, the bank performed creditably as indicated in the table below.

INDICATORS 2011 (GH¢) 2012 (GH¢) INCREASE (%)

TOTAL ASSETS 18,008,047 23,417,065 30.04

TOTAL DEPOSITS 15,776,975 19,935,572 26.36

TOTAL INVESTMENT 7,150,119 8,589,056 20.12

STATED CAPITAL 255,205 265,000 3.84

LOANS & ADVANCES 5,796,438 7,964,121 37.40

PRE-TAX PROFIT 411,519 599,331 45.64

SHAREHOLDERS’ FUNDS 1,458,150 1,873,090 28.46

Following the 20% dividend policy adopted by shareholders in the 2012 AGM, the Board has proposed a dividend payment of GH¢0.039 per share amounting to GH¢101,706 for the year ended 31st December, 2012.

The bank continues offering assistance to communities and institutions within its operational territories as part of its corporate social responsibilities. A total amount of GH¢11,980 was spent in this direction. Areas that benefitted include education, health, infrastructure, district farmers’ day celebration, and scholarship awards to needy but brilliant students who hail from the Bank’s operational territories among other donations.

The bank continues to make very significant strides in competing with other rural banks as it has continued to make an appearance in the Ghana Club 100 awards since its inception. Out of the 100 institutions Otuasekan Rural Bank placed forty fifth; and among the 134 rural banks in the country the bank placed 10th.

The General Manager, Mr. John De-Graft Owusu, in an interview with Business & Financial Times said the bank will continue to pursue policies aimed at maximising more profits and giving exceptional customer satisfaction.

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

The Board Chairman, in his concluding remarks on behalf of the Board, expressed his appreciation to Management and Staff of the Bank for their contribution to the successful results achieved over all these years.