Mumuadu Rural Bank makes record profit before tax

cediThe Mumuadu Rural Bank at Akyem Osino in the Fanteakwa District last year recorded an unprecedented profit before tax of GH¢1,245,695.70 which shows a 95.47 percent increase over the previous year.

The bank’s asset book stood at GHȼ 23,388,566.92 up by 31.5 percent from GH¢ 5,607,139.97 in 2011.

Mr Seth Adom-Asomaning, Chairman of the Board of Directors, disclosed this at the 25th Annual General Meeting (AGM) of the bank at Akyem Osino at the weekend.

“Our loan book grew by 31.02 percent to GHȼ 14,270,526 from GH¢ 9,843,500 while our customer deposit improved by 29.95 percent from GHC 13,685,229.70 to GHC 17,785,105.35”.

Mr Adom-Asomaning said the bank’s advances grew from GHȼ 9,843,500 to GHȼ 14,270,526 while investment in Treasury Bills amounted to GHC 3,709,715.

He said the board had declared a dividend of GH¢ 0.02 explaining that “there was no increase over the previous year’s because of the need to keep a healthy minimum capital and not to be found wanting when the Central Bank decides to raise the minimum operating capital in the not too distant future”.

The board chairman said the bank’s adequacy ratio at 19.28 percent was well above the regulatory minimum threshold of 10 percent “emphasizing our strong capital position in the industry”.

He said Akuafo cheque purchased for the year 2012 amounted to GHȼ 5,033,780.

Mr Adom-Asomaning urged the branch managers to aspire to maintain a high reputation of ethics and integrity by making sound business decisions with the customer in mind.

On social responsibility, he said during the year under review, the bank spent GH¢ 44,354.00 to lend support to various activities aimed at improving societal welfare in areas like education and health.

Mr Kwadwo Aye Kusi, Managing Director of the ARB Apex Bank, in a speech read on his behalf, commended the board, management, staff and shareholders of the bank on their performance.

He said the Efficiency and Monitoring Report prepared by the Apex Bank rated the bank as satisfactory.

“In terms of profitability, Mumuadu Rural Bank was fourth out of 21 rural banks in the Eastern Region and 26th out of 137 rural banks country-wide”.

“Your bank is at the third position in the area of stated capital in the Eastern Region and eight country-wide. Mumuadu Rural Bank placed 18th in terms of capital mobilisation”.

Mr Kusi, however, appealed to the shareholders to acquire more shares in order to cushion the bank in situations of any negative incident.

He advised the bank to put in place pragmatic and realistic programmes and policies such as risk management, staff training and product development and customer service to be able to sustain and consolidate its operations.

Source: GNA

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