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19.07.2004 Business & Finance

Adansi Rural Bank records 1.2 billion cedis profit

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Fomena (Ash), July 19, GNA - Within a relatively short period of four years the Adansi Rural Bank at Fomena, which went into serious distress, recording a loss of 36 million cedis in 1999 has posted a pre-tax profit of 1.2 billion cedis.

The current board and management staff, since taking over, have worked to record increases in operational performance year after year. From a loss of 36,957,425 cedis in 1999, the bank recorded a profit of 75,430,073 cedis in 2000, 309,863,648 cedis in 2001 and 608,000,000 cedis in 2002.

The bank's profit of 1,256,000,000 cedis in 2003 represented more than 100 percent over the previous year's performance.

With stagnated deposits of 741 million cedis due to the absolute loss of confidence and hope in the bank as at December 1999, the bank can now boast of a deposit of 11 billion cedis.

The bank's operational performance chart for the past three years showed that deposits rose from 3,600,000,000 cedis in 2001 to 6,600,000,000 cedis in 2002 and 11,300,000,000 in 2003.

Total shareholders fund which stood at negative 32,310,162 cedis in 1999, has improved tremendously. In view of the remarkable performance.

Shareholders fund increased by 117 percent from 869 million cedis in 2002 to 1.9 billion cedis in 2003, Mr Ahmed Kwame Boakye, Chairman of the Board said at the bank's 14th annual shareholders meeting.

He said advances grew substantially by 106 percent from 1.8 billion cedis in 2002 to 3.7 billion cedis in 2003. The advances went into agriculture, cottage industry, transport and trading among others. The Board Chairman said with the objective of promoting vigorous economic activities the micro finance desk of the bank was reshaped and strengthened to cater for the substantial credits channelled through that window with the aim of increasing the pace of wealth creation among the poor in the bank's catchment area.

The bank granted 1,285,000,000 cedis to 1,611 women through its micro credit and deposit schemes, while the women's total savings for the period was 5,300,000,000 cedis.

"Much emphasis was placed on credit support to women. We see them as reliable and also agents for rapid poverty eradication in the community", says Mr Boakye.

He announced that during the year 640,440,000 cedis of on-lending funds were received from various sources including the Village Infrastructure Project (VIP), Senior Minister's office and Social Investment Fund (SIF) and that of the Ministry of Women and Children's Affairs.

The bank is participating in the international and domestic money transfers of the ARB Apex Bank (Apex Link) and a total of 4.3 billion cedis were received from outside the country.

The volume of cocoa purchases during the year was beyond expectation. Purchases rose from 3.8 billion cedis in 2002 to 10.3 billion cedis by the 31st December 2003.

"Our prompt cash payment won the confidence of our cocoa farmers. Here, I pat the shoulders of the bank officials for their commitment and dedication to duty. We also commend all the parties involved for the quick release of funds for cocoa purchases during the year, especially Apex Bank for facilitating prompt cash supply", the Board Chairman said.