New Tafo (ER), Sept 30, GNA – The Adonten Community Bank at New Tafo net profit increased by 67 percent up at GH¢ 263,296.00 in 2011 from GH¢ 157,295.00 the previous year.
The bank’s Board Chairman, Mr Emmanuel Appiah Korang, who announced this at the 14th Annual General Meeting (AGM) at New Tafo on Saturday, recalled that five years ago, the Adonten Community Bank was in distress.
“However, with prudent policies and management supported by our valued customers, we have been able to reverse the downward trend,” he noted.
Mr Appiah Korang said consequently, the bank’s gross profit had risen almost 14 times within the five years from GH¢ 20,685.00 in 2007 to GH¢ 289,486.00 in 2011.
He noted that the remarkable operational results had enabled the bank’s net worth to exceed the GH¢1.0 million mark for the first time, increasing from GH¢ 750,639.00 in 2010 to GH¢ 1,070,349.00 in 2011, an increase of 43 percent.
The Board Chairman said the bank continued to grow in all the major areas of its operations, adding that total deposits rose significantly by 44 percent from GH¢ 3,299,243.00 in 2010 to GH¢ 4,762,808.00 in the year under review.
“Total expenses also rose by 34 percent from GH¢ 953,596.00 to GH¢ 1,274,828. The bank granted loans and overdrafts amounting to GH¢ 2,670,604.00 in 2011 compared with GH¢1,759,901 in 2010, an increase of 52 percent.”
The bank’s investments also rose by 26 percent from GH¢ 1,675,000.00 in 2010 to GH¢ 2,105,000.00 in 2011.
He said in the year under review, the bank continued to manage on behalf of the state, the Government Special Funds for Poverty Alleviation Schemes totaling GH¢ 106,902.00.
“Total income rose from GH¢ 953,596.00 to GH¢ 1,274,829.00 exceeding the one million Ghana Cedis mark for the first time. Total assets of the bank also rose from GH¢ 4,391,997.00 at the end of 2010 to GH¢ 6,354,882.00 at the end of December 2011, representing an increase of 45 percent”.
The Board Chairman said as a result of the Bank of Ghana’s directive for Rural and Community Banks to increase their share capital as part of an ongoing restructuring of the banking sector, there was the need therefore for shareholders of the bank to increase their share holdings.
He said the stated capital of the bank, had risen from GH¢ 319,760.00 in 2010 to GH¢ 512,860.00, representing an increase of 60.39 percent.
Mr Appiah Korang announced that in 2011, the bank was again invited to join the elite Ghana Club 100 at the 63rd position, an improvement on the number 72 position in 2010.
He said in view of the remarkable results achieved during the period under review, the Board recommended a dividend of GH¢1.50 per share.
Mr Appiah Korang appealed to the shareholders to use their dividend receipts to acquire more shares in anticipation of a future call for increase in the stated capital of Rural and Community Banks.
He said the bank and all its agencies had been fully computerized, adding “we are running the manual and the computerized system side by side”.
Mr Appiah Korang said that had improved the operational efficiency of the bank and was grateful to the ARB Apex Bank for their patience and tremendous support in the implementation of the computerization programme.