La Community Bank rated the 27th best rural bank

Accra, June 29, GNA – Out of the 127 rural community banks in the country,

La Community Bank Limited (LCBL), has been rated the 27th with excellent

performance in the banking industry.
The bank's capital of GHc1,162,852 far exceeded the minimum threshold of

GHc150,000 stipulated by the Bank of Ghana.
Mr Eric Osei-Bonsu, Managing Director, ARB Apex Bank Limited,

announced this in an address read on his behalf by Mr Hyginus S. Zon, Head,

Internal Control Department of the bank at the 21st Annual General Meeting of

the LCBL.
He said the feat would enable the bank to underwrite new lines of business to

increase profitability and provide it with the cushion or buffer against inherent

risks.
The MD said the board and management bold initiative in opening the

Teshie-Nungua Agency, would broaden fund mobilization base of the bank with

the ultimate goal of improving on profitability in order to maximize shareholder

value.
He said the Apex Bank would be introducing new commercial lines of

business such as trade finance, relationship/domestic banking, guarantees, value

chain financing, card-based products, Automated Teller Machines operations,

offshore banking and deposit insurance among other things to enable it generate

some income to sustain its operations.
Mr Osei-Bonsu stressed that the proposed services are not intended to

compete with the rural banks but rather to provide support services in areas

where the rural banks do not have the capacity to undertake.

He urged LCBL to position itself adequately and effectively to confront the

challenges that would be posed by the emerging technological developments

within the banking industry, as well as the adverse impact of the global credit

crunch on developing economies.
He advised the staff of the bank to be vigilant in their operations in order to

prevent unscrupulous persons from using it to engage in fraudulent activities.

Mr Osei-Bonsu called on the bank to deliver quality and efficient services to

attract more clients in order to improve on its commission-based income stream.

The Chairman of the Board of Directors of the Bank, Mr Kofi B. Asante, in

his annual report, said the bank recorded net operating profit before tax of

GHc415,454 as against GHc305,262 in 2007 reflecting an increase of 36 per

cent.
The total assets grew by 7.4 per cent from GHc9.6 million in 2007 to

GHc10.4 in 2008, saying that the marginal growth was due to the channelling of

resources into the opening of the Teshie-Nungua Agency; thus reducing funds

which could otherwise have gone into investment and loans.

Mr Asante said the bank total deposits increased by 6.8 per cent from

GHc7.2 million in 2007 to GHc7.7 million in 2008, adding that the increase was

below expectation and that efforts would be intensified to mobilize more

deposits in 2009, which would be a conduit point for loans and investments.

He said the 2009 fiscal year would a challenging one, however, the bank's

adherence to its strategic plan to maximize profits by increasing income earning

assets and fee-based income realistically and vigorously would raise more

deposits for investments.
He said as part of the bank's social responsibility, six students were granted

scholarships in 2008, bringing the total number of beneficiaries to 46.

The bank now has three branches.
GNA