Union Rural Bank records 116% rise in profit before tax
The Union Bank at Senya Beraku in the Central Region made a profit before tax of GH¢411,419 in 2011 as against GH¢190,309 in 2010, representing an increase of 116 per cent.
Its total deposits also improved from GH¢3,877,531 in 2010 to GH¢4,620,633 in 2011, an increase of 20 per cent.
The chairman of the Board of Directors of the Bank, Col. Abaka K. Jackson (Rtd) made this known at the 10th Annual General Meeting of shareholders of the Bank at Senya Beraku on Saturday.
He said the Bank’s total assets increased from GH¢5,613,603.00 in 2010 to GH¢6,733,341 in 2011.
Col. Jackson said total loans and Advances granted to customers increased from GH¢3,543,502 in 2010 to GH¢4,260,252 in the year under review.
He said the directors had proposed 30 per cent of the 2011 profit after tax (PAT) in the sum of GH¢112,012.20 to be paid as dividends to shareholders.
Col. Jackson appealed to the shareholders to buy more shares to increase the bank’s capital since there was news that the Bank of Ghana planned to raise the minimum capital requirement of rural banks to about GH¢1.5 million.
He said any rural bank that was not able to raise the additional capital will be forced to fold up.
Mr Paul Kombian Kojo, General Manager of the Bank disclosed that as part of its corporate social responsibility during the year under review, the bank had donated a heavy duty generating plant to the Senya Beraku health Centre.
It also constructed a waiting shed for travelers and appealed to those who had been given loans to repay promptly to enable others to benefit.
Mr Duke Osam-Duodu, Acting Managing Director of ARB APEX Bank Ltd, in an address read for him urged the bank to deepen its microfinance business to improve its overall result.
He urged rural Banks to enhance their operational efficiency and risk management practices to enable them to operate effectively in the dynamic industry.
Mr Osam-Duodu asked Rural Banks to strengthen their internal controls to ensure that operations were carried out in an orderly manner, consistent with best practices in the industry.
He also appealed to the Board and Management to put the necessary structures in place to identify and mitigate the incidence of risks which may adversely affect the achievement of the bank’s objectives.
Source: GNA