Juaben Rural Bank posts GH¢354,049 pre-tax profit
THE JUABEN Rural Bank Limited at Juaben in the Ashanti Region posted a pre-tax profit of GH¢354,049.45 in 2008, representing a 15.69% increase against GH¢306,017.50 recorded in 2007.
The bank's profit, as at June this year, stood at GH¢380,923.00, more than the profit for the entire 2008 fiscal year.
The Chairman of the Board of Directors of the bank, Nana Kwabena Asante Krobea, who announced these figures at the 24th Annual General Meeting of shareholders over the weekend, said the improved performance was in spite of stiff competition from foreign banks, an astronomical rise in inflation, incessant power fluctuations, and hikes in the price of crude oil.
The bank, he said, had caught the eyes of the business community, resulting in its being adjudged a member of the Ghana Club 100, following its sterling performance.
The Board Chairman announced that the bank's deposit rose by 16.61%, from GH¢7,306,640.00 in 2007, to GH¢8,520,117.00 in 2008, and that the bank's total loans portfolio rose from GH¢3,949,574.00 to GH¢5,352,859.00, representing a 36.53% increase.
Nana Asante Krobea said as part of management's decision to build a stronger bank among rural and community banks in the country, the bank intends to establish two more branches at Fumesua and Atimatim, to commensurate the growth in its customer base of 60,189 from 52,806.
As part of its social responsibility, the bank has committed GH¢10,230.00 in donations and scholarships to over 22 students.
Mr. Duke Osam-Duodu, Deputy Managing Director of ARB Apex Bank Ltd., urged the rural and community banks to merge, in order to stay in business and meet the challenges of modern banking.
He said about 15 (71%) of the 21 rural banks in the Ashanti Region, had, as at December 2008, met the stated minimum capital ofGH¢150,000 demanded by the Bank of Ghana.
Mr. Osam-Duodu noted that it was better for rural banks to merge and lose their identity and stay in business to provide services to the communities, than to maintain the status quo, and eventually collapse and deprive the communities of essential financial services, and lose business to competition from emerging big banks.
The Deputy Managing Director cautioned rural banks to observe internal control systems such as effectiveness and efficiency in operations, reliability of financial reporting, and compliance with applicable laws and regulations.
According to him, failure on the part of any bank to observe these, might result in dire consequences, and urged the banks to operate internal control units, as part of the management structure.
He disclosed that the ARB Apex Bank had entered into collaboration with the Western Union Money Transfer, for inward foreign remittances, hoping that all rural banks would provide the service by the end of the year.
“We have rolled out the product to 124 rural banks, with over 350 payment points,” he said.