Agona Rural Bank makes giant strides

The Agona Rural Bank with Its headquarters at Agona Kwanyako has declared a profit before tax of GH?154,586.00 in 2016 as against GH?110,824.00 in the previous year.

The total income of the bank increased from GH?2,273,855.00 to GH?2,494,608.00 whilst expenditure rose from GH?2,163,031.00 to GH? 2,340,022.00.

Major Rtd Ben Donkor, Chairman of the Board of the Directors of the Bank made this known at the 31st Annual General Meeting (AGM) of shareholders at Kwanyako in the Agona East District.

He said a total of GH?256,887.00 was meant for interest payment and GH?60, 000.00 for impairment loses on the loans and advances.

The Chairman stated that the assets of the bank increased from GH?9, 564,111.00 to GH?10, 852,090.00, showing an increase of 13.4 per cent.

The Chairman said savings mobilisation increased from GH?7, 885, 721.00 in 2015 to GH?9,090,987.00 in 2016 representing 14.78 per cent.

He announced that with an increase in deposit base, the bank increased its short term investment from GH?2, 775,540.00 to GH?5, 769, 350.00 representing 107.86 percent.

He said loans granted to a total of 828 customers amounted to GH?3, 938,900.00 in the areas of Agriculture, education, construction, commerce, microfinance, school fees and rent.

Major Donkor said the bank had embarked on a vigorous share mobilisation to satisfy the minimum capital requirement of one million Ghana Cedis share capital Bank of Ghana (BOG.

He said the Board of Directors did not recommend payment of dividend because the bank needed to satisfy the new capital requirement to enable the bank to stay in business.

The Board Chairman appealed to the shareholders to recommend potential major shareholders to purchase more shares to increase the share mobilisation to assist the bank to diversify its operation.

Mr Samuel Osei, Central Regional representative of APEX Bank said Agona Rural Bank was the second giant among rural banks with Enyan Denkyira Rural Bank and Bawjiase Area Rural Bank as third and first respectively.

He said efforts were being made to recapitalised all distressed rural banks in the Central region to improve the development of the rural economy as part of it strategy to reduce poverty among rural folks.