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Business News of Wednesday, 14 October 2015

Source: GNA

Nsoatreman Rural Bank declares pre-tax profit

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The Nsoatreman Rural Bank Limited on Saturday held its 26th Annual General Meeting (AGM) at Nsoatre in the Brong-Ahafo Region, declaring a pre-tax profit of GH¢239,349.18 for 2014.

The amount signified eight percent increment over the 2013 pre-tax profit of GH¢221,094.28.

Mr. Kofi Agyeman, Chairman of the Bank’s Board of Directors, who announced this in his report, said it was an impressive performance despite a general rise in the cost of running a business and cost of living that prevailed in the country throughout the year.

Mr. Agyeman noted that during the year under review, the nation experienced unfavourable economic conditions, as the cedi continued to depreciate fast against the major currencies, resulting in price hikes for almost every commodity.

He said electricity supply was unstable, and there were upward adjustments of utility charges, saying “these adversely impacted on all sectors of the economy”.

“For rural banks of which the Nsoatreman Rural Ban is no exception, operating cost and non-performing loans galloped astronomically and therefore reduced profits immensely” but “these notwithstanding our bank was adjudged satisfactory during that year,” the Board Chairman added.

Mr. Agyeman expressed satisfaction that the bank’s loan advances increased by GH GH¢150,098.93, implying five percent higher in 2014 over 2013, because the former recorded GH¢3, 449,419.13 as against GH¢3,299,320.20 for the latter.

He indicated that the bank recorded GHC938, 940.13 change in deposits, representing 12 per cent increment in 2014, which was GH¢8,975,939.79, as against GH¢8,036,999.66 in 2013.

The Board Chairman disclosed that the bank increased its investments by GH¢370,835.20, signifying 11 per cent upward achievement, because whilst 2014 was GHC3, 683,276.40, it could only invest GH¢3,312,441.20 in 2013.

Mr. Agyeman said their total assets was GH¢10,690,844.51 in 2014, indicating a change of GH¢748,134.09, which was eight percent increment over 2013 performance of GH¢9,942,710.42, adding that the bank’s share capital also shot up from GH¢293,348.43 in 2013 to GH¢322,234.15 in 2014, a difference of GH¢28,885.72, indicating an increase of 10 per cent.

In a speech delivered for him, Mr. Kwadwo Aye Kusi, Managing Director of ARB Apex Bank Limited, observed that the performance of the Nsoatreman Rural Bank in the rural banking industry amidst the stiff competition in the financial services industry in general, required consistent management of their resources to achieve sustainable growth.

Mr. Kusi, therefore, urged the bank to offer innovative products and improved customer service delivery, to remain competitive, whilst providing suitable returns to stakeholders.

He advised the Board, Management and staff, to take advantage of the changing trends in the economy, to change the bank’s business processes, while improving its business model to achieve progress for new sources of income.