Adonten Community Bank Makes Gains

New Tafo (ER) Sept. 24, GNA - The Adonten Community Bank at New Tafo in the Eastern Region, made a net profit of GH?179,695 in 2010 as against GH?159,772 recorded in 2009.

Mr Emmanuel Appiah Korang, Chairman of the Board of Directors, who made this known at the 13th Annual General Meeting of the Bank on Saturday, said the profit was an increase of 12 per cent.

He said the total assets of the bank rose from GH?3,104,000 in 2009 to GHc4,391,000 in 2010, which represented an increase of 41 per cent in the year under review.

“The bank’s net worth increased from GH?562,000 in 2009 to GH?750,000 in 2010 representing 48 per cent”.

Mr Appiah Korang indicated that the total deposit rose from GH? 2,325,000 in 2009 to GH?3, 299,243 in 2010, which represented 19 per cent increase.

“Total investments rose from GH?802,000 in 2009 to GH?1,675,000 in 2010, which represent 109 per cent increment.”

Mr Korang said the bank granted loan and overdraft facilities amounting to GHc1,759,901 in the year under review compared to the sum of GH?1,610,195 in 2009.

“The bank increased its lending operation by nine per cent as against 7.7 per cent in the previous year. Gross loans and overdraft to the various sectors amounted to GH?2,329,565.00 in 2010 as compared with GH?1,817,299.00 in 2009, inching up by 28.19 per cent.”

Mr Appiah Korang informed the shareholders that the Bank of Ghana had alerted all Rural and Community Banks (RCBs) that the on-going restructuring of the Banking Sector would sooner rather than later call for a further increase in share capital.

He said there have been discussions about merging and acquisition of RCBs by the ARB Apex Bank.

“In preparation for these eventualities the bank has embarked on a vigorous campaign to attract new capital from new shareholders and also to encourage existing shareholders to increase their shares.”

He disclosed that the stated capital of the bank rose from GH?179,605.00 in 2009 to GH?319,760 00 in 2010, which represented an increase of 78 per cent.

Mr Appiah Korang indicated that the board had decided that all new shareholders should buy a minimum of five shares while the existing shareholders with less than five shares should top up their shareholdings within three years.

He said in December last year, the bank was for the first time invited to join the elite Ghana Club 100 at number 78.

“The board recommends a dividend of GH?1.00 per share. The board however recommends to shareholders to use the dividend to acquire more shares in view of possible increase in share capital for RCBs.”

Mr Appiah Korang said the bank continue to exercise its social responsibility to communities and individuals in its catchment area and mentioned a school project for Maase Methodist and sponsorship for East Akyem Municipal Assembly best youth farmer as examples.