Adonten Community Bank declares dividend

New Tafo (E/R), Sept. 30, GNA-The Adonten Community Bank made a net profit of 522.7 million cedis as at December 31, 2006 and declared a dividend of 5,000.00 cedis per a share.

The Chairman of the Board of Directors, Nana Kena Apaw, made this known at the Ninth Annual General Meeting and the 10th anniversary celebration of the bank at New Tafo on Saturday. He said the bank's net profit fell short of the previous years profit of 583.7 million cedis due to the high amount of bad and doubtful debts.

The stated capital of the bank increased by 43 per cent from 394 million cedis in 2005 to 565 million cedis in the year under review as a result of issuing of additional shares of 3,413 ordinary shares. Shareholders funds of the bank increased by 29 per cent from 2,219 million cedis in 2005 to 2,856 million cedis in 2006 and called on the shareholders to increase their shares and encourage their relations both at home and abroad to invest in the bank.

The Credit Manager of the ARB APEX Bank Ltd, Mr Enoch Arkaifie, said with declining in interest rates, Rural and Community banks had no option but to book good loans to continue to be in business. He urged the management of the bank to adopt aggressive but flexible banking approach in order to increase their profit levels and add value to the shareholders fund if the bank was to stand the stiff competition in the banking business.

Mr Arkaifie appealed to Rural and Community Banks to strengthen their internal control mechanism to help avoid the creeping computer frauds into the banking system with the computerization of the Rural and Community banks under the Millennium Challenge Accounts project.

The Eastern Regional Chairman of the Association of Rural Banks, Mr Solomon Akwettey, appealed to the Ministry of Finance and Economic Planning and the Bank of Ghana to permit Rural and Community banks to issue payment orders for the payment of Senior High School and West African Examination Council fees without commission levied on such payment orders by Ghana Commercial Bank.

He also appealed to government to grant all rural and community banks reimbursement in respect of the cost of the re-denomination of the cedi exercise in the form of tax rebate for a year or two. Mr Akwettey said the tax rebate would help the banks to recoup some of the money they lost in their preparation towards the re-denomination of the cedi.

In a speech read on his behalf, the East Akim District Chief Executive, Mr Emmanuel Victor Asihene, appealed to the Adonten Community Bank to establish an agency in Kyebi, the District Capital, to enable the assembly do improve upon its business relationship with the bank. 30 Sept 07