The assets of Rural and Community Banks (RCBs) increased by 31.8 percent, to GH¢1.5 billion in 2012, from a December 2011 position of GH¢1.1 billion, according to an annual report issued by the Efficiency Monitoring Unit of the ARB Apex Bank.

The growth was mainly from loans and advances, investments, cash and balances with other banks -- which grew by 37.5 percent, 31.2 percent and 15.9 percent respectively.

The 133 RCBs also accumulated a pre-tax profit of GH¢62.42 million by the end of December 2012. Comparing this figure to that of the previous year, when RCBs posted pre-tax earnings of GH¢36.39 million, there was an increase of GH¢26.03 million, or 71.5 percent last year.

The strong pre-tax profit growth was due to an increase in commission and fee-based income from automated funds transfer products, high returns on Government’s short-dated and medium-term bills, as well as interest on loans and overdrafts granted to customers.

Out of the total profit of GH¢62.42 million realised by the 133 RCBs, Atwima Kwanwoma Rural Bank at Pakyi No. 2 in Ashanti Region alone contributed a little over GH¢2.9 million, coming first in the national ranking; followed by Amenfiman Rural Bank at Wassa Amenfi in the Western Region with a figure of approximately GH¢2.2 million; with Lower Pra Rural Bank, also in the Western Region, coming third with a figure of a little over GH¢2 million.

The total provision for bad and doubtful debts declared by RCBs in the year under review amounted to GH¢36.52 million. This formed 5.6 percent of gross loans and advances, showing a marginal deterioration of 30 basis points over the 5.3% recorded at the end of the third quarter of 2012.

Interest in suspense for the non-performing loans and advances stood at GH¢3.01 million, compared with GH¢4.64 million recorded at the end of the third quarter -- resulting in net loans and advances of GH¢608.99 million.

The gross loans and advances portfolio increased from GH¢611.55 million in the third quarter to GH¢648.52 million, representing a marginal growth of 6 percent.

This growth was attributed to a 12.6 percent increase in deposits during the quarter. Gross loans and advances formed 54.7 percent of total deposit liabilities of a little over GH¢1.1 billion recorded at the end of the year, compared to 58.1 percent recorded at the end of the third quarter.

One hundred and twenty-two (122) RCBs operated profitably, as against 117 banks at the end of the third quarter.

Under a composite rating system used by the ARB Apex Bank -- which categorises RCBs as “strong”, “satisfactory”, “fair”, “marginal” and “unsatisfactory” -- 12 RCBs were rated as strong; 84 as satisfactory; 31 as fair; and only four and two as marginal and unsatisfactory respectively.