The Atiwa Rural Bank at Akyem Kwabeng recorded a net profit of GHC 22,392 last year, Professor Samuel Obeng Apori, Chairman of the Bank of Directors, has disclosed.
Addressing the 23rd Annual General Meeting (AGM) of the bank at Akyem Kwabeng on Saturday, he said total assets grew from GH˘ 6,725,025 in 2010 to GH˘ 8,824,317 in 2011 while deposits also went up from GH˘ 5,690,941 in 2010 to GH˘ 7,313,105 in 2011.
“Gross advances in 2011 were GH˘ 3,055,483 as against GH˘ 2,414,703 in 2010, an increase of 26.5 per cent.
The rate of loan recovery also increased from 60 per cent in 2010 to 80 per cent in 2011,” Prof Apori said.
He said some of the factors that accounted for the low profit margin included the bank’s computerisation project, which was expensive in respect of technical services procured from IT experts for data collection and configuration to the new operating –T24 software.
Prof Apori also mentioned the increase of staff salaries across board, which was about 90 per cent using the 2010 salary levels as the base.
“With the introduction of the new software, staff training also assumed urgent attention and dimension in order to keep staff abreast (of) the proper use and maintenance of the bank’s new operating and accounting software.
“This training also came along with some additional cost to the bank.”
He told the shareholders that the worst was over while the prospect of a very rewarding future beckons.
“The pragmatic measures put in place by the Board to guide Management in the day to operations of the Bank as promised at the 2010 AGM have already started to bear fruits,” he said.
The Board Chairman said the returns for the third quarter of 2012 showed unaudited profit of GH˘ 282,154.42 which was unprecedented in the history of the bank.
On future prospects, Prof Apori said the Board would like to increase shareholders capital from the current value of GH˘ 159,919.00 to about GH˘ 1,000,000.00 within three to five years through the appropriation of 25 per cent of net profit.
“There will also be aggressive marketing of our shares to existing shareholders and other prospective investors in around the Atiwa Community.”
He said the Board had recommended that the net profit of GH˘ 22,392 should be retained while dividend should not be recommended for the 2011 financial year.
Mr Duke Osam-Duodu, Acting Managing Director, ARB APEX Bank Limited, in an address read on his behalf, congratulated the Board, Management and Staff for demonstrating an improvement in the performance of the bank in 2011 as against 2010.
He noted that the 28.5 per cent increase in deposits was a clear demonstration of the confidence of the public in the bank and challenged them to continue to develop more innovative and attractive products to meet the demand of customers.