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Brong Ahafo’s Nsoatreman Rural Bank declares pre-tax profit

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A woman holds 03 July 2007 in Accra a waThe Nsoatreman Rural Bank Limited in the Brong-Ahafo Region declared a pre-tax profit of GH₵ 239,349.18 for 2014 on Saturday during its 26th Annual General Meeting (AGM) at Nsoatre in the Brong-Ahafo Region.

The amount signifies an eight per cent increment over the 2013 pre-tax profit of GH₵ 221,094.28.

Mr Kofi Agyeman, Chairman of the Bank’s Board of Directors, who announced this in his report, said it was an impressive performance despite a general rise in the cost of running a business and the cost of living that prevailed in the country throughout the year.

He noted that during the year under review, the nation experienced unfavourable economic conditions, as the Cedi continued to depreciate fast against the major currencies, resulting in price hikes for almost every commodity.

Mr Agyeman also said the unstable electricity supply and the upward adjustments of utility charges, “adversely impacted on all sectors of the economy”.

“For rural banks of which the Nsoatreman Rural Bank is no exception, operating cost and non-performing loans galloped astronomically and therefore reduced profits immensely but these notwithstanding our bank was adjudged satisfactory during that year,” the Board Chairman added.

He expressed satisfaction that the bank’s loan advances increased by GH₵ 150,098.93, five per cent in 2014 over 2013 – 2014 recorded GH₵3,449,419.13 as against GH₵3,299,320.20 for the former.

He indicated that the bank recorded a GH₵ 938,940.13 change in deposits, representing 12 per cent increment in 2014, which was GH₵8,975,939.79, as against GH₵ 8,036,999.66 in 2013.

The Board Chairman disclosed that the bank increased its investments by GH₵370,835.20, reflecting 11 per cent upward achievement, because while 2014 was GH₵3, 683,276.40, it could only invest GH₵3,312,441.20 in 2013.

Mr. Agyeman said their total assets amounted to GH₵ 10,690,844.51 in 2014, indicating a change of GH₵748,134.09, which was an eight percent increment over 2013’s performance of GH₵ 9,942,710.42,

He added that the bank’s share capital also shot up from GH₵ 293,348.43 in 2013 to GH₵ 322,234.15 in 2014, a difference of GH₵ 28,885.72, indicating an increase of 10 per cent.

In a speech delivered for him, Mr. Kwadwo Aye Kusi, Managing Director of ARB Apex Bank Limited, observed that the performance of the Nsoatreman Rural Bank in the rural banking industry amidst the stiff competition in the financial services industry, required consistent management of their resources to achieve sustainable growth.

Mr. Kusi therefore urged the bank to offer innovative products and improved customer service delivery, to remain competitive, whilst providing suitable returns to stakeholders.

He advised the Board, Management and staff, to take advantage of the changing trends in the economy, to change the bank’s business processes, while improving its business model to achieve progress for new sources of income.

Source: GNA

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