Fiagya Rural Bank declares GH¢163,532 net profit for 2011

Fiagya Rural Bank at Busunya in the Nkoranza North District of Brong-Ahafo has declared a net profit of GH¢163,532 for 2011 financial year, as against GH¢182,694 for the previous year.

Professor Kwasi Nsiah-Gyabaah, Chair of the Board of Directors announced at its 27th Annual General Meeting (AGM) at Busunya over the weekend.

He said the total assets of the bank increased from GH¢3,866,810 to GH¢5,530,637, representing about 43 percent increment.

Prof. Nsiah-Gyabaah explained major reason for the reduction in profit was the decline in interest rates on treasury bills during the period under review.

The bank’s deposit increased by 1.2 percent at GH¢3,227,696.

It recorded 31 percent improvement in its total income increasing from GH¢737,428 in 2010 to GH¢ 963,352 in 2011. It offered GH¢2,259,255 as loans and advances to customers.

The bank’s stated capital reduced from GH¢184,119 to GH¢ 164,601 following the re-classification of dividends received from the Association of Rural Banks (ARBs) Apex Bank, which were previously transferred to stated capital and now recognized as capital surplus.

Prof. Nsiah-Gyabaah explained management could not declare dividends because of the purchase of a vehicle and construction of one-storey building for the Nkoranza Agency of the bank.

The Board Chair, therefore, pleaded with shareholders to bear with management and wait for next year.

Prof. Nsiah-Gyabaah stressed the need for people to buy more shares to benefit from bigger dividends while assisting in building a solid financial base for the bank.

Mr. Kofi Bonsu Boakye-Boateng, President of the Brong-Ahafo Regional Chapter of the ARBs, commended the management of the bank for the hard-work and efforts, saying he was proud that the bank had been recognized as one of the outstanding community banks in Ghana.

Mr. Boakye-Boateng emphasized the need for management of rural banks to declare and propose dividends during AGMs, not only to boost the morale of shareholders but also encourage them to purchase additional shares.

Mr. Duke Osam-Duodu, the Acting Managing Director of the ARB Apex Bank, in an address read for him, said the Danish International Development Agency (DANIDA) had initiated some funding programmes to support the management of rural banks and commended the Danish Government for that support.

Mr. Osam-Duodu mentioned “Rural Finance Wholesale Fund”, “The Merger Fund Capacity Building Support for Rural Banking” and “Human Resource Development of the Apex Bank” as DANIDA funding programmes to support rural banks.

He said the funds would assist rural banks to grant long term loans to people as a way of creating job opportunities in the communities and also offer consultancy services to banks which might intend to merge.

On capacity building, support and human resource development, Mr. Osam-Duodu said the fund would ensure the provision of effective and efficient training programmes and seminars as well as technical assistance to the banks.

Source: GNA

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