Awutu-Bawjiase (C/R) Sept. 19 GNA-The Awutu-Bawjiase Area Rural Bank chalked-up a pre-tax profit of 1,075,980,274 cedis during the 2003 operational period as against 572,532,765 cedis in 2002.
Mr. Emmanuel Kofi Osei, chairman of the bank's board of directors, announced this at the 14th Annual General Meeting (AGM) of the shareholders of the bank held at Awutu-Bawjiase on Saturday. According to Mr. Osei, the bank paid to the government, tax totaling nearly 82 million cedis as its contribution to the national development programme and set aside 19.8 million cedis for the commencement of a scholarship scheme to promote education in the bank's catchments area in the Awutu-Effutu-Senya district and Adeiso area in the Eastern Region.
He said as at December 31st last year, the bank's total assets had risen from 9,088,382,716 cedis recorded in 2002 to 12,863,955,754 cedis. Mr. Osei said total operational income recorded by the bank during the period under review amounted to 2,860,277,435 as against 1,784,297,161 cedis, which produced a pre-tax profit of 1,075,980,274 cedis.
During the same period the bank recorded total deposit of 9.1 billion cedis as against 6.9 billion cedis in 2002, while its stated capital also rose from 416,627,318 in 2002 to 631,077,318 in 2003. Mr. Osei noted that the increases was as a result of the transfer of 200 million cedis from the bank's reserved fund in accordance with section 66 (1) (C) of the companies code 1963 Act 179.
He said it is the bank's determination to increase its stated capital to one billion cedis to ensure that the institution is built on a sound economic footing all the time.
The Board Chairman announced the floating of shares by the at the rate of 1,000 cedis per share, saying that the exercise would end on December 31 this year and therefore advised people wishing to buy shares from the bank to do so without delay.
In a speech read for him Mr. Emmanuel K. Kwapong, Managing Director of ARP APEX Bank limited disclosed that the Bank of Ghana (BOG) had added the Awutu-Bawjiase Area Rural bank to the 99 satisfactory performing rural banks, out of the total 117 rural banks in the country.
Mr. Kwapong said as at January 31 2004, Bawjiase rural capital adequacy ratio has hit 25 percent above the minimum ratio of 6 per cent as required by the law governing banking institution.
Mr. Kwapong described the achievement of the Bank within the past few years as an excellent and highly commendable, adding that directors, managers and staff of the bank deserve to be praised for their credible performance.
"However, against the background of these commendable achievements, I exhort you to strengthen your internal mechanisms to minimize the incidence of risks and ensure more efficient operations in order to attain the objectives for which the bank was established", Mr. Kwapong said.
He charged workers and directors of the bank to continue to be dedicated and committed to the cause of rural banking concept to help accelerate rural development.
Mr. Kwapong said the ARB apex Bank is happy that the Awutu-Bawjiase Area Rural Bank had been able to meet its social obligations to the people in its area of operation and urged the bank to do more to stem poverty among the inhabitants in Bawjiase and Adeiso areas.
On his part, Dr. Samuel Duffu, the Acting Chairman of the ARB Apex bank, also expressed satisfaction at the overall performance of the bank in the past years and advised shareholders to show interest in the bank and urged them to by more shares and also encourage others to join the bank.
He also advised loan defaulters of the bank to settle them to enable other customers also to benefit from the bank's numerous credit schemes geared towards improving economic status of the rural poor.