Ga Rural Bank has recorded a 45 percent decline in profit for the year 2015 due to high cost of operation and impairment losses on advances and depreciation.

The bank posted a net profit after tax of GH¢238,226 for the year ended 31st December 2015, compared to GH¢433,859 in 2014, a decrease of GH¢195,633 representing 45 percent.

“The bank continues to face challenges in the recovery of loans and overdrafts granted to some of our customers. It is sad to note that most of the beneficiaries have not been honest to us. We are now resorting to the law courts to retrieve the facilities. We are also considering publishing the names of the recalcitrant debtors in the newspapers,” said Nana Bram Okae II, Board Chairman of the Bank at its 24th annual general meeting in Accra.

The bank’s total income however, increased by 12percent from GH¢5,771,780 in 2014 to GH¢6,517,758. Total expenses for the year also increased by GH¢954,003.00 from GH¢5,293,602 in 2014 to GH¢6,247,605, representing an increase of 18.2percent.

The increase in income, the bank says was mainly due to interest earned on advances portfolio and increase in investments.

Customer Deposits also rose from GH¢20,198,857 to GH¢25,571,750 corresponding to a 26.6 increment.

The Mr. Okae II assured shareholders of a turnaround in the bank’s fortunes in the years ahead, adding that the bank intends to aggressively embark on an expansion drive which will increase their dividends.

The Managing Director of ARB Apex Bank Limited, Kwadwo Oye Kusi, in a speech read on his behalf, commended Ga Rural Bank for its compliance with provisions governing the sector.

“1 will respectfully advise the board to maintain its pragmatic programmes and policies. In order to help rural and community banks to comply with best customer service principles, we have developed a Compliant Account opening form for rural banks. I am glad to announce that Ga Rural Bank is one of the few banks which is largely compliant,” Mr. Oye Kusi said, urging the bank to attain a fully compliant status by the end of the year.