The Nyakrom Rural Bank in the Agona West Municipality of the Central Region, pioneers in unit banking, increased its net profit after tax from GH₵154,462 in 2013 to GH₵389,554 in 2014, representing an increase of 152.30 percent.
The total assets of the bank also increased from GH₵11, 472,531 in 2013 to GH₵15,785,202 in 2014, showing an increase of 37.59 per cent.
Mr Timothy Osam Duodu, Chairman of the Board of Directors of the Bank, made this known at the 38th Annual General Meeting (AGM) of the shareholders at Nyakrom .
He said the total shareholders’ funds grew from GH₵755,143 in 2013 to GH₵1, 132, 866 in 2014, representing an impressive increase of 50.02 per cent.
The Chairman said the bank was involved in three main micro finance schemes, namely, cocoa farmers’ loan scheme, susu scheme and Women in Development (WID), as part of the efforts of the bank’s liquidity mobilization drive.
He said under the cocoa loan scheme, the bank granted a total of GH₵415,014 to support 1,540 cocoa farmers in 2013.
He stated that in 2014 the number of cocoa farmers increased to 2,045, with a total of GH₵478,050 as loan being granted to them in 2014, to help maintain their cocoa farms to increase yields.
Mr Duodu said the total deposits from customers increased from GH₵902,730.72 as at December 2013, to GH₵1,471, 649.50 million, representing 63.02 percent.
In a speech read on his behalf, the Managing Director of ARB Apex Bank, Mr Kwadwo Aye Kusi, commended the Nyakrom Rural Bank, the first rural bank in the country established in 1976, and implored the management and board of the bank to institute a risk management policy to identify, assess, monitor and control risks that may occur to enhance development.
The MD said that in order to raise more deposits, rural banks must review their interest rates on savings deposits.
He urged shareholders of the bank to continue to invest in its capital, by buying more shares.
He disclosed that the Bank of Ghana had announced new capital requirements for all deposit taking financial institutions, including rural banks.
Okofo Katakyi Nyakoh Eku the tenth, Omanhene of the Nyakrom Traditional Area, praised the bank for its impressive performances in the rural banking industry.
He urged the board and managements of rural banks to institute risk allowance and other insurance schemes for their staff, to serve as motivation, to increase productivity.
Mr Acquah Arhin, President of the Central Regional Chapter of the Association of Rural Banks, said about five rural banks in the region were facing liquidity problems in their operations.
He said the Apex Bank had released funds to support distressed rural banks in the Central Region, and had also sent supervising managers to all the affected banks.