The Suma Rural Bank in the Jaman North District in the Brong Ahafo Region recorded GH ¢34,340 as its profit before tax in 2006 as against the GH¢30,010 it had in 2005.
In addition, the bank's total deposit jumped from ¢838,800 to GH ¢970,500 while overdrafts and advances to its customers increased from GH¢492,200 to GH ¢662,500 over the same period.
The Chairman of the Board of Directors of the bank, Mr F. O. Gyan, announced this at the 21st Annual General Meeting of the bank at Suma.
He added that the net worth of the bank recorded an 11.5 per cent increase from the previous balance of GH ¢180,400 to GH ¢200,700 during the period under review.
Mr Gyan said the downward trend in interest rates and non-payment of loans by recalcitrant customers accounted for the low increase in the bank's profit margin.
The bank declared a dividend of GH ¢6,500 at five pesewas per share for the year under review. In an address, the Sunyani Area Branch Manager of the ARB Apex Bank, Mr Maxwell Donkor, reminded shareholders of rural banks about the need to elect experienced persons with the requisite knowledge to serve on their boards.
“Banking is a serious business and the need to have those with the required background to steer the affairs is paramount to your financial progress and decision making,” he said.
Mr Donkor appealed to shareholders of the bank to buy more shares to increase its paid-up capital to serve as cushion against risks.
Story by Emmanuel Adu-Gyamerah