Sonzele Rural Bank records leap in profit

The Sonzele Rural Bank Limited at Jirapa in the Upper West Region saw a major jump in its profit from 208,512 Ghana Cedis in 2011, to 389,606 Ghana Cedis last year, the figure representing 87 per cent increase.

The bank has continuously recorded impressive achievements in its operating income, registering a 43 per cent growth in 2012, despite a business environment characterized by huge operational costs.

Mr. Albert Bosoro, Chairman of the Board of Directors of the Bank made these known at the Annual General Meeting of its shareholders held in Jirapa at the weekend. The Bank which was established in 1983, will celebrate its 30th anniversary on November 24.

Mr. Bosoro said although Sonzele had an 80 per cent loan recovery rate which was satisfactory, stringent measures were being applied to recover outstanding loans. He called on shareholders and customers who were indebted to the bank to pay up the overdue loans in order for others to benefit from the facility.

As a testimony of its desire to send services to the door steps of its customers, the bank has begun feasibility studies to establish agencies at the Wa campus of the University for Development Studies, and some of the newly created districts in the Region.

The Board Chairman announced that the bank spent GHc28,312.00 on its corporate social responsibility programmes during the year.

Mr. Kwadwo Aye Kusi, Managing Director of ARB Apex Bank in a speech read on his behalf, said Rural and Community Banks (RCBs) had since April this year, been receiving 100 per cent of the entire commission on Western Union money remittances, as against the 20/80 per cent previous arrangement in favour of the rural banks.

He announced that ARB Apex Bank had reduced the interest rate on its borrowings to the RCBs from over 20 per cent to 16 per cent to conform to Bank of Ghana’s current policy rate.

He advised Sonzele Rural Bank to evolve strategies to identify, assess, monitor and control operational and credit risks, in order to strengthen its internal control systems, add value to its operations and enhance its overall performance.

Mr. Kusi urged the Bank’s Board of Directors to step up its corporate social responsibility to the community, in order to meet one of the key objectives for which rural banks were established.