Adansi Rural Bank's post over 120 per cent rise in profit

Fomena (Ashanti), July 31, GNA - The Adansi Rural Bank at Fomena in the Adansi North District of the Ashanti Region, posted a profit before tax of GH¢ 450,036.81 in 2011, representing over 120 per cent increase over the previous year.

The bank also recorded over 50 per cent growth in deposits, gross income and loans and advances during the period.

Presenting the Chairman's report at the 22nd annual general meeting of shareholders at Fomena on Monday, Ahmed Kwame Boakye the Chairman said, the increase in deposits from GH¢ 9.77million in 2010 to GH¢ 14.76 million in 2011 was due to hard work and mobilization drive pursued by the staff, management and directors.

He said the total assets of the bank also rose from GH¢ 12.3 million in 2010 to GH¢ 17.3 million in 2011, representing an increase of over 40 per cent.

The bank granted loans totalling GH¢ 6.4 million in 2011 in the areas of agriculture, cottage industry, transport, trading and other businesses.

The Board Chairman was, however, not happy with the behaviour of loan defaulters as the bank's non-performing assets stood at GH¢ 564,876.08 as at December 2011 and appealed to debtors to repay the loans to avoid court action.

Mr. Boakye said with the view to enhancing the bank's resolve to support the people in its operational area, a microfinance product with best practices had been introduced in Adansi North and South districts and Atonsu to provide financial support to small and micro business activities.

Again, he announced that a new loan product had been introduced to assist public sector workers, who were not customers of the bank to access medium and long-term loans to support their building and other capital intensive projects.

“The bank as a way forward will seek ways of strengthening and developing its operations to maintain the confidence of its numerous customers and shareholders”, Mr. Boakye said and added “we will also intensify loan recovery, deposit mobilization and maintain quality assets to increase profitability.”

The Acting Managing Director of ARB Apex Bank, Mr. Duke Osam-Doudu in a speech read for him, commended Adansi Rural Bank for its impressive performance over the years, which had landed it a satisfactory rating by the Efficiency Monitoring Unit (EMU) report for the first quarter of 2012.

GNA