Ada Rural Bank posted a net profit of GHÂ˘56,935 at the end of the 2011 fiscal year.
The bank made losses of GHÂ˘75,800 and GHÂ˘14,400 in 2008 and 2009. However, it registered a marginal profit of GHÂ˘5,500 in 2010.
The Board Chairman, Daniel Narh Sabbah made the disclosure during the bankâs 27th Annual General Meeting (AGM) held recently at Kasseh, Ada.
He said the bankâs total assets increased by 38.90 percent from GHÂ˘3.17 million to GHÂ˘4.41 million between December 31, 2010 and December 31, 2011.
âAt the same time, deposits grew by 40.08 percent from GHÂ˘2.71 million to GHÂ˘3.81 million. Investment in Treasury Bills and other government papers increased by 13.62 percent from GHÂ˘1.22 million to GHÂ˘1.38 million. Total shareholders fund also moved up from GHÂ˘309,363 to GHÂ˘ 373,038 indicating an increase of 20.58 percent,â he stated.
The bankâs stated capital increased from GHÂ˘297,142 to GHÂ˘ 297,952, representing a paltry 0.27 percent growth.
Mr Sabbah pointed out that though the amount was higher than Bank of Ghanaâs minimum requirement, it fell short of the bankâs target of GHÂ˘500,000.
Loans and other forms of credit amounted to GHÂ˘1.87 million at the end of 2011. However, repayment of the facilities has not been encouraging, and the bank has arranged with a number of debt-collecting agencies to retrieve the facilities.
The Board Chairman confirmed that the bank has been computerized through the assistance of ARB Apex Bank to allow customers to transact business electronically at its branches.
He said steps were being taken to open a deposit mobilization and loan recovery centre at the Tema-Motorway roundabout, adding that plans were underway to upgrade the skills of the workers in Information Communication Technology (ICT) and customer relations to enhance the bankâs image.
Eunice Osei-Bonsu, who spoke on behalf of Duke Osam Duodu, acting Managing Director of ARB Apex Bank, lauded the bank for its sterling performance but urged the board and management to improve deposit mobilization, the bankâs capital base, ensure cost control and reduction and improve loan recovery to increase its performance in future.
The District Chief Executive (DCE) of Ada, Rex Wussah, was unhappy with the low turnout of shareholders for the meeting.
He entreated people to do business with the Ada Rural Bank instead of the microfinance institutions in the area to enable the bank continue its good works.
Â By Mike Avickson