Bawjiase Area Rural Bank makes impressive profit

Awutu Bawjiase, (C/R) Aug 22, GNA - The Bawjiase Area Rural Bank at Awutu Bawjiase, in the Central Region, almost doubled its profit before tax from GHC379,286 in 2008 to GHC618,460 in 2009.

The bank's total deposit also improved from GHC4,102,813 in 2008 to GHC5,142,988 in 2009, while its total assets increased from GHC5,524,121 in 2008 to GHC7,403,771 in the next year, an increment of 34 percent.

Mr Emmanuel Osei, Chairman of the Board of Directors, announced this at the 20th Annual General Meeting of the shareholders of the bank, at Awutu Bawjiase, at the weekend.

He said the bank invested in government bonds and other securities to the tune of GHC2,438,220 in 2009 while that investment for the previous year was GHC1,812,270.

The bank also disbursed GHC3,661,447 to customers in the year under review, while GHC 2,767,705 was given in 2008 in loans and advances, with 75 percent of the facility going to women under a micro finance programme.

The Board Chairman said the share capital of the bank increased from GHC249,148 in 2008 to GHC550,000 in 2009.

A total of GHC100,000 in dividend was, consequently, paid to shareholders in 2009, he said.

Mr Osei stated that GHC520,000 had been spent on the construction of a head office building, currently at a 90 percent completion level.

He assured shareholders that staff at the head office at Bawjiase would move in before end of the year.

The bank additionally allocated GHC11,428 as a scholarship fund for brilliant but needy pupils and students in the Awutu Senya District.

Mr Eric Osei-Bonsu, Managing Director of ARB Apex Bank, commended the bank for its sterling performance and urged the shareholders to buy more shares to increase the share capital, in a speech read for him.

He reiterated the advice to Rural and community banks to set up additional desks to cater for Information Communication and Technology (ICT), share registry management, micro finance, reconciliation of transactions, research and marketing and administration to boost their operations.

Mr Osei-Bonsu said there was the need for Rural and Community Banks to form cooperative mergers and acquisitions to serve as a solution to their survival threat in the face of the stiff competition and 'turbulent landscape' in the banking industry.