Business News of Friday, 21 December 2012

Source: thebftonline

Asutifi Rural Bank posts growth in profit

The Asutifi Rural Bank Limited at Acherensua in the Asutifi District of Brong Ahafo Region has posted very remarkable progress in the 2011 year under review.

The Bank made a profit of approximately GH¢111,200 in the 2011 year under review as against a little over GH¢51,680 in 2010 representing an impressive growth of 116%.

The Chairman of the Board of Directors Mr Anthony Yaw Oppong announced this at the Bank’s 24th Annual General shareholders’ meeting .

According to him, the Bank registered a very satisfactory performance in all the performance indicators in spite of the major economic challenges posed by heightened local competition as well as the many negative effects on the operations of the Bank.

He mentioned that the Bank’s catchment area continued to witness heightened competition with the influx of new financial institutions and commercial banks in almost all the operational territories of the Bank adding to the already choked environment.

As at the end of the 31st December 2011, the Bank’s Capital Adequacy Ratio (CAR) had hit 12.25% which is over and above the minimum statutory requirement of 10.0% while total assets increased by 18% from about GH¢4,049,300.00 in 2010 to GH¢4,751,600.00 in 2011

The Bank’s Investments in Treasury Bills and other short term instruments stood at

GH¢1,600,000.00 in 2011, an increase of 12% from GH¢1,400,000.00 in 2010; while Advances (Loans and Overdrafts) also stood at approximately GH¢1,732,740.00 in year 2011, as against GH¢1,298,360.00 in 2010 which represents an increase of 37.79%.

The Bank’s Stated Capital as at 31st December 2011 stood at a little over GH¢200,000 which is above the Bank of Ghana minimum Stated Capital requirement of GH¢150,000.00

Meanwhile the Board of Directors has recommended a dividend payment for the year 2011 at a rate of GH¢0.01 per share.

With a relatively stable Base Rate by the Central Bank (BOG), the Bank will have to respond accordingly, like all other Banks, by maintaining a carefully tracked lending rate and a balanced Interest Rate on Deposits to remain competitive. The Board Chairman has assured shareholders that the impact on the Bank will continue to be closely monitored in 2012/2013.

In order to maintain comparative advantage and safeguard the interest of shareholders, and other stakeholders, the Bank plans to continue to ensure good corporate governance and good ethics to ensure compliance with statutory requirement and BOG/ARB Apex Bank directives, improve customer care and service, introduce a viable Micro finance unit and enforce internal control measures as well as strengthening the Internal Audit Unit of the Bank.

The Bank continues to offer assistance to communities and institutions within its operational territories in terms of community development projects. A total amount of GH¢ 10,227.50 was spent in this direction. Areas that benefited included education and security as well as construction of a Rest Stop at Nkaseim GPRTU Station at a cost of GH¢3,550.00

Finally the Board Chairman took the opportunity to express the Board’s gratitude to the Bank’s cherished and treasured customers without whom indeed they would not be in business.

He further extended his appreciation to Management and Staff of the Bank for their support. He also thanked all other Stakeholders for their immense contribution and finally his colleagues on the Board for their visionary direction.