ASUBONTEN RURAL BANK MAKES MORE PROFIT (PAGE 19, APRIL 27, 2010)

The Asubonten Rural Bank Limited at Worawora in the Jasikan District of the Volta Region has been commended for the massive profit it made last year.
The bank’s profit after tax rose to GH¢107,576.00 from GH¢98,572.00 in 2008. Its total assets also increased from GH¢1,631,625.00 in 2008 to GH¢2,070,213.00 in 2009.
The Managing Director of ARB Apex Bank Ltd, Mr Eric Osei-Bonsu, gave the commendation at the bank’s ninth annual general meeting held at Worawora over the weekend.
Mr Osei-Bonsu said the overall performance of the Asubonten Rural Bank was fantastic despite the economic challenges the country faced and the difficulties which confronted the bank especially in loan recovery.
“Despite the challenging economic circumstances of our country and the difficulties which confront you especially in loan recovery, your general performance calls for celebration. The overall performance of Asubonten in the year 2009 was fantastic,” he said.
He also lauded the bank’s initiative in increasing its shareholder funds as a remarkable feat. The bank’s shareholder funds rose from GH¢246,867.00 to GH¢284,240.00 in 2009.
Mr Osei-Bonsu commended the board, management and staff of the bank for a job well done.
The Managing Director expressed satisfaction that the bank had continued to live up to its classification as the best rural bank in the country since 2008.
Mr Osei-Bonsu suggested ways rural banks in the country could surmount their capital constraints and urged them to consider mergers with sister banks.
He said some development partners had come to their aid to provide funds for such mergers and as of now, two applications for mergers had been received from the Western and Central regions.
On electronic banking, Mr Osei-Bonsu said significant support had been accessed through the Millennium Development Account (MCA) towards the computerisation and networking of the entire rural banking system into a uni-system to enhance customer satisfaction.
The Chairman of the Asubonten Rural Bank’s board, Abusuapanin Wilson Seth Antwi, announced that due to the bank’s stated profit after tax, a dividend of GH¢0.13 per share would be paid to shareholders. This calculated to GH¢50,000.00, representing 46 per cent of the bank’s profit for 2009.
He said due to the high loan defaulter rate, the bank reduced its advances by four per cent, that is from GH¢578,368.00 in 2008 to GH¢533,744.00 in 2009.
He said only 10 out of 618 benefited from loans for agricultural purposes.
Mr Joshua Odoom, the Supervising Manager of Asubonten Rural Bank, appealed to those who benefited from loans to pay back promptly to enable others to also benefit. He called on the general public to purchase the bank’s shares to increase its shareholding especially at a time when the bank had started paying dividends to its shareholders.