Fiaseman Rural Bank records over 100% growth in profit

Fiaseman Rural Bank Limited at Bogoso in the Prestea - Huni Valley District of the Western Region has posted a pre-tax profit of approximately GH¢673,000 in the 2010 year under review as against a little over GH¢ 331,500 in the previous year. This represents an astronomical growth of 103%.

The Bank’s total deposit went up from a little over GH¢ 5.2m in 2009 to approximately GH¢ 9.8m in the 2010 year under review marking a remarkable growth of 88%. Out of the total deposits of GH¢ 9.8m outstanding at the end of the year, Savings constituted 55%, Demand/ Current formed 24%, Fixed/Time accounted for 9%, Asetenapa Susu was 7 % with Nnoboa Savings recording 5%.

Loans and Advances of the Bank grew from about GH¢2.2m in 2009 to a little over GH¢ 3.3m representing an increase of 54%. Total assets of the Bank increased from GH¢ 6.96m to approximately GH¢ 12.3 recording a growth of 76%. Total investment also saw a very impressive growth from around GH¢ 3.4m to GH¢ 6.7m representing 97%. Total shareholders’ funds grew from a little over GH¢ 1m to approximately GH¢1.4m indicating an increase of 37%.

The Chairman of the Board of Directors, Nana Amanfo Edu VI, made these as well as other developments known during the Bank’s Annual General Meeting of shareholders held recently at Bogoso.

According to him the very impressive performance of the Bank came partly because of the buoyant performance experienced the national economy. There were major improvements in almost all the economic fundamentals of the country. The major pointers included achievement of single digit inflation of 9% by December 2010; reduction of Central Bank’s prime rate from 18% to 13.5% during the year; and an all-round good performance of the national currency during the year under review.

He also mentioned the commencement of commercial crude oil production in the country and the continuous rise in the prices of commodities. According to him it is highly expected that the oil production would exert positive impact on the Ghanaian economy. He also mentioned the 91-Day Treasury bill rate which however fell from 18.90% in January 2010 to 11.92% by December 2010, a drop of 36.93%.

He added that in spite of the significant dip in the rate of the major income dictator of the Bank, the 91-Day Treasury bill, the Bank did its best to significantly make a positive transformation in 2010.

The Bank in its quest to support developments in its operational territories, committed an amount of GH¢ 6,920.00 in 2010 to fulfill its corporate social responsibilities compared to GH¢ 3,900.00 in 2009, an increase of 77 %.

The Bank achieved its ultimate corporate vision of becoming one of the strongest Rural Banks in Ghana in June 2010 and even improved its performance in the last two quarters of the year.

The Efficiency Monitoring Unit (EMU) of ARB Apex Bank Ltd. Report for 2010 on the performance of Rural and Community Banks (RCBs) based on the composite rating system recognized Fiaseman Rural Bank as one of the Eight (8) Strong RCBs in Ghana out of 133 nationwide. In the Western Region, the Bank maintained its exclusive 1st. position.

The Chairman in conclusion mentioned the apparent buoyant performance of the Ghanaian economy coupled with commencement of commercial crude oil production in the Western Region of the country in 2010. This he said would create an enabling operating environment for further growth of the Bank this year.

The General Manager of the Bank Mr Evans Aidoo said management would spare no effort in implementing the directives of the Board and also map out good and effective strategies to give off their best to sustain the growth impetus chalked in the past year. These he said would include strategic staff training, development and motivation, quality customer service delivery, aggressive deposit mobilization as well as reviewing interest rates and other charges to attract more customers to the Bank.