Kaaseman Rural Bank improves profit base

Page 33, Jan 7, 2010
Story: Emmanuel Adu-Gyamerah

THE Kaaseman Rural Bank in the Western Region recorded profit of GH¢152,363 in 2008 as against GH¢76,361 it had in 2007.
The amount represents 99.5 per cent increase in pre-tax profits during the year under review over the previous year.
The bank also increased its deposits from GH¢4,455,311 to GH¢4,725,990, while its total assets increased from GH¢5,553,362 to GH¢5,819,527.
The Chairman of the Board of Directors of the bank, Mr Kwame Twumasi Ankrah, disclosed these at the 21st annual general meeting of the bank at Kaase.
He, however, bemoaned a lack of will by the authorities to enforce the use of the Akuafo Cheque system in the purchase of cocoa, and stated that the situation had negatively affected major players in the cocoa purchase business.
He explained that the Akuafo Cheque purchase, which used to be one of the bank’s major income sources, continued to fall from GH¢ 17,611,500 in 2006 to GH¢12,618,000 in 2007 and to GH¢10,938,035 in 2008.
Mr Ankrah added that because of that the existing rural banks were required to grow and no dividend was declared, explaining that part of the bank’s profit had been transferred to beef up the bank’s stated capital.
He said that the stiff competition in the banking industry, especially from the commercial banks and non-bank financial institutions, was the a challenge to the survival of rural banks.
The Manager of the Sunyani branch of the ARB Apex bank, Mr Claver Dadzie, cautioned the staff, the board and the management of the bank not to be complacent about their achievement.
He expressed hope that these gains would be consolidated to serve as an impetus to spur the bank on to achieve more laurels in future.
Mr Dadzie noted that performance of most community and rural banks in the country had been encouraging as they had consistently registered impressive deposit mobilisation and increases in share capital.
He said that was an indication of the growing public confidence in the rural banking system.
Mr Dadzie said that the achievements notwithstanding, rural banks still had a lot to do by way of organisational and operational restructuring.
He explained that there was a need for rural banks to quicken the pace of migration from manual operation to embrace information and communication technology, effective deposit mobilisation, credit administration and cost control and reduction.
Mr Dadzie said it was only these measures that could enable them to meet the challenges of competitive and turbulent business environment.