You are here: HomeBusiness2016 06 14Article 447439

Business News of Tuesday, 14 June 2016

Source: Graphic.com.gh

Fiaseman Rural Bank adjudged ‘Most Efficient’

The Efficiency Monitoring Unit (EMU) of the ARB Apex Bank Limited has adjudged the Fiaseman Rural Bank in the Western Region as the most efficient rural bank among all the 141 rural and community banks (RCBs) in the country at the end of December 31, 2015.

The bank also received a gold award as the rural bank of the year (advisory services) from the Western Regional Co-ordinating Council during the first regional financial services excellence awards.

Again, in line with current global development in financial reporting, the bank has adopted for the first time the International Financial Reporting Standards (IFRS) in the preparation of financial statement for 2015.

The Chairman of the Board of Directors of the bank, Nana Amanfo Edu VI, who disclosed this at the 28th annual general meeting of shareholders at Bogoso, the capital of the Prestea-Hun Valley District, explained that, ‘‘Your bank, therefore, counts itself amongst the few financial institutions which have complied with the new standard on international reporting.’’

Pre-tax profit/dividend

He further indicated that the bank recorded a profit before tax of GH¢3,374, 887 in 2015 compared to GH¢2, 849, 466 in 2014. This represents a favourable growth of 18.4 per cent.

Consequently, Nana Edu said the board had recommended total dividend payout of GH¢870, 766 for 2015 as against GH¢606, 922.00 in 2014, which represented 43 per cent increase over the previous year.

The chairman explained that the shareholders would enjoy a dividend per share of GH¢0.062, representing a 22 per cent growth over the 2014 rate of GH¢C0.051 per share.

He added that ‘‘ the Fiaseman Rural Bank has incessantly created wealth and offered good returns to its shareholders, hence the payment of annual dividend in accordance with the bank’s regulations.’’

Operational results

Nana Edu, who is also the Omanhene of the Mankesim Traditional Area,said notwithstanding the economic challenges in the year under review, the bank’s total assets grew from GH¢46, 476, 665 in 2014 to GH¢67, 171, 251 in 2015. This represents an increase of 45 per cent.

He said its total deposit liability rose significantly by 52.9 per cent from GH¢33, 806, 562 in 2014 to GH¢51, 692, 788.00 in 2015, while investment shot by 66.93 per cent from GH¢17, 555, 3050.00 in 2014 to GH¢29, 304, 537 in 2015.

Similarly, the Omanhene, who is also the Vice Chairman of the ARB Apex Bank, indicated that loans and advances increased from GH¢16, 412, 229 in 2014 to GH¢22, 061, 358.00 in 2015, representing a growth of 34.42 per cent.

He said the bank’s share per price remained GH¢0.20 per share and that shareholders’ fund increased from GH¢6,360, 562.00 in 2014 to GH¢8,050,172 in the year under review, which represented a rise of 27 per cent.

Nana Edu announced that the bank had met the Bank of Ghana (BoG) minimum capital requirement for RCBs, posting GH¢402,353 and GH¢615, 842 in 2015 and 2016 respectively.

Support to cocoa farming activity

The chairman also indicated that the bank would support cocoa farming activity to the tune of GH¢4 million by the end of 2016 out of its profit made.

He added that in line with its commitment to assist communities in the catchment area, an amount of GH¢133, 153.48 was spent as part of its corporate social responsibility (CSR) in the areas of farming, education, health security and sanitation in 2015.

The Deputy Managing Director of the ARB Apex Bank, Mr Stephen Archer, commended the bank for its impressive performance over the years and urged the shareholders to purchase more shares so as to boost the operations of the bank.