Atwima-Mponua Rural Bank sees sharp drop in profit

The Atwima Mponua Rural Bank saw a sharp drop in profit last year, the Chairman of the Board of Directors, Mr Kofi Ofori, has said.

It posted a profit before tax of GH¢204,791.66 compared with the previous year’s figure of GH¢322,711.00, representing a decline of 36.54 per cent.

He attributed this to the fall in the discount rate of treasury bills from 19.68 percent in January to 11.88 percent in December 2010.

Addressing the annual general meeting of the bank at Toase in the Atwima-Nwabiagya District on Monday, Mr Ofori said returns from that source was not enough despite 50.19 per cent increase in investments.

The bank has therefore decided to diversify its investments including concentrating on granting more loans.

It will also cut back on investing in treasury bills and fixed deposits with other financial institutions.

Mr Ofori also expressed concern about the bank’s poor performance with regard to share mobilization.

“The growth was only 4.57 per cent” he said, and invited the meeting to come out with workable strategies to improve on that.

He said to help achieve the goal of joining the rank of leading rural banks, the board would ensure among other things long term sustainability through the launch of a five-year development programme and the setting up of a recovery unit to monitor and recover loans in arrears.

Mr Ofori told the shareholders that during the period under review they spent GH¢48,474.08 on social responsibilities.

This came in the form of scholarship awards to some students and support for educational institutions including the Toase and Mankranso Senior High Schools (SHS).

Source: GNA