Fiaseman Rural Bank declares A21.1 billion net profit

Bogoso (W/R) Dec. 10- GNA-Fiaseman Rural Bank declared one point one billion cedis net profit at its 18th Annual General Meeting of shareholders held at Bogoso on Saturday.

The bank closed the year 2005 with capital adequacy ratio at 37.95 per cent with no default throughout the year. All primary and secondary reserves were also met without default and there were no default in liquidity reserves as well.

The bank also scored hundred percent on regulatory compliance on Bank of Ghana On-Site Examination for 2005.

In an address, read on his behalf, Mr. Anthony Evans Amoah, Western Regional Minister urged the bank to help the youth in the area of micro financing under the National Youth Employment Programme (NYEP). He also appealed to the management of the bank to set up a proper cost control and loan recovery mechanism to ensure sustainability of lending to the customers all the time.

Mr. Amoah urged the management of the bank to be wary and conscious of internet fraud, which has sprung up all over the business world and guard against the assets of the bank. Mr. Hyginus Zon, Head, Inspection and Audit Department, Association of Rural Banks (ARB) Apex Bank Limited, who spoke on behalf of the managing director said due to the stiff competition in the banking industries in Ghana, there was the need for the bank to adopt more aggressive, prudent but flexible approach in order to stay in business.

To this end, he suggested strategies which could go a long way to further strengthen the bank.

Mr. Zon said, the bank should continue to lend to the community rather than investing in government security which interest income has taken a nosedive due to the fallen rate. He said the bank should also expand its activities in micro finance which when prudently handled could bring not only huge income to the Bank but would also help to improve the livelihood of the beneficiaries.

He also encouraged the management of the bank to train its staff to improve their performance and efficiency, among other things. Mr Zon said computerization project which commenced last year with the support from Government's Rural Financial Services Project (RFSP) have received a major boost as all Rural Banks' Offices and Agencies would be computerized within three years under Millennium Challenge Account (MCA), adding, the 93MCA will also provide funds to install a Wide Area Network (WAN) to connect all the Rural Banks to the Apex Bank and Bank of Ghana.

Nana Edu Amanfo IV, the Board Chairman of the Bank, said the Bank won a place as a member of the exclusive and prestigious multi-sectorial business grouping, the Ghana Club 100 (GC 100) for the year 2005 organized by Ghana Investment promotion sector.

Nana Amanfo said, the year 2005 ended the five- year Corporate Plan with the last three years seeing the substantial growth and all the Key Performance Indicators (KPIs) exceeded those in the Corporate Plan. Touching on the way forward, he said, 2006 begins a new five-year Corporate Plan period for the Bank and realising competition as the watchword in the Banking Industry, the Board has therefore strategised to compete effectively to be among the strong Rural Banks in Ghana.

He said the Bank sponsored a total of 27 brilliant but needy wards of Shareholders in various institutions with 39.5 million cedis. He said the Bank has also made donations to certain Institutions in its area of operation such as Faiseman Secondary School, Prestea Government Hospital, Huni-Valley to the tune of 26.1 million cedis.