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Adansi Rural Bank records 123% growth in profit

The Adansi Rural Bank Limited at Fomena in the Adansi North District of Ashanti Region has posted a remarkable operational performance in the 2011 year under review.

The Bank’s profit before tax in the year under review stood at approximately GH¢450,036; which showed a significant percentage growth of 123.55 over the previous year’s profit of GH¢201,316.

The Bank recorded a total deposit of GH¢14.76million in the 2011 year under review as against GH¢9.77million in the previous year, representing 51.07% growth.  This was as a result of the hard working staff and the mobilisation drive pursued by Directors and Management.

The Chairman of the Board of Directors Mr. Ahmed Kwame Boakye announced this at the 22nd Annual General Meeting of shareholders held last Saturday in the forecourt of the Bank’s head office at Fomena.

According to him, the Bank registered a very remarkable growth in all the performance indicators despite the major economic challenges posed by heightened local competition as well as the negative effects on operations of the Bank.

Investments in Treasury bills and other securities of the Bank increased from GH¢4.4million in 2010 to GH¢6.2million in the 2011 year under review, representing an increase of 39.49%.

Total assets of the Bank rose from GH¢12.3million in 2010 to GH¢17.3million in 2011. This represents a growth of 40.33%. Out of the GH¢17.3m of total assets in 2011, fixed assets account for 10.25%, which represents GH¢1.77million.

The Bank granted loans totalling GH¢6.4million in the year under review as against 4.1million in the previous year, representing an increase of 54.55% with an amount of GH¢1.1million granted under the micro-credit scheme.

The areas that benefitted from the Bank’s loan facility included agriculture, cottage industries, transport, trading among others.

The Bank’s non-performing assets stood at a little over GH¢564,876 as at the end of the period under review. This represents 8.76% of the Bank’s total loans portfolio. Thus, the Board Chairman has appealed to loan defaulters to repay their loans to avoid any court action that would be taken against them.

The Bank’s latest branch expansion, which occurred in 2010 in Kumasi at Atonsu and New Edubiase at the Adansi South District according to the board chairman, has started reaping returns commensurate with the huge expenditure associated with the expansion.

The Bank’s stated capital increased from a little over GH¢205,215 in 2010 to approximately GH¢233,843 in the 2011 year under review representing an increase of 13.95%. Even though Adansi Rural Bank has met the Bank of Ghana’s prudential capital requirement of GH¢150,000, shareholders were still encouraged to buy more shares.

During the period under review, the Bank’s activities in both domestic and international transfers made significant improvement. The volume of activities carried out during the year was GH¢3007,724.73.

The Directors of the Bank have recommended dividend payment of GH¢0.031 per share for 2011. The total dividend proposed for the year under review is GH¢103,480 as against GH¢58,278 paid in 2010, which represents an increase of GH¢45,202.02 over the previous year’s figure.

Adansi Rural Bank Limited has introduced a new loan product called Public Sector Employee Loan Facility (PSELF). Government-salaried workers who are not customers of the Bank but are paid through the Controller and Accountant General’s Department can access medium– and long-term loans from the Bank to support building projects and other properties.

The Bank continues to offer assistance to communities and institutions within its operational territories in terms of community development projects. A total amount of GH¢9,841 was spent in this direction. Areas that benefitted included education, health, security, sports, district Farmers’ Day celebrations and scholarship awards to needy but brilliant students that hail from the Bank’s operational territories.

The Board Chairman in his concluding remarks stated that in spite of the numerous challenges facing the Bank, it will continue to support customers to improve their living conditions. He said the Bank will intensify loan-recovery, deposit mobilisation and maintain quality assets to increase profitability.

By Seth KRAMPAH, Fomena

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