Akyemmansa Rural Bank makes progress

Akyem Ayirebi, Dec. 09 GNA - The Akyemmansa Rural Bank at Akyem Ayirebi in the Birim North District made a net profit of 166.8 million cedis for the year 2005 compared to 129.3 million cedis in 2004, representing an increase of 22.5 percent.

Shareholders funds increased by 26.2 percent from 513.5 million cedis in 2004 to 647.9 million cedis in 2005 with the share price of the bank now standing at 250 cedis per share as compared to the previous year's price of 120 cedis per share.

Mr. Isaac K. Asare, the Chairman of the Board of Directors of the bank disclosed this at the 10th annual general meeting of the bank at Akyem Ayirebi last Friday.

He said total assets of the bank increased from 2.6 billion cedis to 2.86 billion cedis, an increase of about 10 percent. The bank purchased over 17.3 billion cedis worth of Akuafo Cheques for 2005/2006 as against an amount of 8.7 billion cedis purchased in the 2004/2005.

Mr Asare, who is also the Financial Controller of the Ministry of Local Government Rural Development and Environment said the bank gave loans and overdrafts totalling 1.287 billion cedis as against 1.1 billion cedis in 2004.

He said the bank disbursed over 437 million cedis Micro Finance loans to women engaged in small scale cottage industries like soap making, oil palm extraction and petty trading. Mr E.K. Kwapong, Managing Director, ARB Apex Bank in a speech read on his behalf, said in view of the stiff competition in the banking industry there was the need for the bank to adopt more aggressive, prudent but flexible approach to banking in order to stay in business. He suggested to the bank to continue to lend to the community rather than investing in Government securities, which interest income has taken a nosedive due to falling rates. The bank should expand its activities in Micro finance, which when prudently handled, could bring a huge income to it. Mr Kwapong urged management of the bank to take advantage of series of training programmes being organised by the Apex Bank to improve the performance and efficiency of its staff. He said all rural banks' head offices and agencies would be computerized within three years under the Millennium Challenge Account (MCA) programme.

The MCA would also provide funds to install a wide Area Network (WAN) to connect all the rural banks to the Apex Bank and the Bank of Ghana.