Bawjiase Rural Bank posts unprecedented GH¢5.5m profit in 2014

CedisThe Bawjiase Area Rural Bank posted an unprecedented profit of GH¢5,504,182 million in 2014, as against GH¢4,594,930 million in 2013, represent an increase of 19.8 per cent.

Mr. Emmanuel Osei, Chairman of the Board of Directors of the Bank, announced this at the 25th Annual General Meeting (AGM) of the bank at Awutu Bawjiase.

Mr Osei said total deposits of the bank increased from GH¢11,940,374 in 2013, to GH¢14,526,245 million in 2014.

He said total asserts of the bank improved significantly over the previous year from GH¢18,120,757 million to GH¢21,237,233 in 2014, representing a growth of 17.2 per cent.

The Board Chairman stated that the bank disbursed total loans and advances from GH¢22,857,178 million to GH¢29,199,330 million.

He said the departmental analysis of the loans disbursed in 2014 were main stream loans, Damida Micro loans and CSWE Micro loans.

Mr. Osei said investments in short-term securities such as treasury bills increased from GH¢5,898,566 million in 2013 to GH¢7,273,293 million, showing an increment of GH¢1, 273,298 million, representing 23.3 per cent increment of the previous year.

On Stated Capital, Mr Osei said the Board proposed a transfer to stated capital of GH¢250,000 in addition to new purchase by shareholders of GH¢13,780 during the year under review.

He said the bank had stated capital of GH¢1,876,620 million, which was above the regulatory minimum of GH¢1million.

According to the Chairman, the bank shall continue its stated Capital base on yearly basis to cushion itself against any future regulations in relation to the state Capital that may be ordered by Bank of Ghana.

Mr. Osei stated that due to the favorable performance of the bank during the year, the Board had proposed a dividend of GH¢230,000, representing GH¢0.0277.

He therefore entreated shareholders to continue to purchase more shares to strengthen the bank’s capital base.

The Chairman said the board had set aside an amount of GH¢21,346, representing two per cent of the bank’s profit for the year under review to be paid into a scholarship scheme fund to support needy but brilliant students in the area.

Mr. Benjamin Chemel, Deputy Head of Finance, in  a  speech read on behalf of the  Managing of Director (MD)  of ARB Apex Bank, Mr. Kwadwo Ayeh Kusi, praised the Bawjiase Area Rural Bank for its impressive performance that had made it one of the best rural banks in Ghana.

The Apex MD called on Rural Banks to comply with the Bank of Ghana (BoG) and ARB Apex Bank rules that include SSNIT Pension, companies Act, tax laws and internal policy controls to sustain the rural banks.

Mr. Kusi said the Apex Bank had introduced the G. Vive platform to the Rural and community banks for the verification of authentication document presented by customers.

The MD said the Bank of Ghana had raised the minimum paid-up capital to GH¢300,000 in 2015, GH¢500,000 in 2016 by 31st December, and GH¢1 million in December 31, 2017.

He urged the community and rural banks to work hard to meet the requirements, in order not to be affected by the law.

Source: GNA

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