Anlo Rural Bank 2016 profit dips

Front view of the bank

Front view of the bank

The Anlo Rural Bank in the Volta region has recorded a dip in profit from GH¢ 858, 891, in 2015 to GH¢ 791, 817 in 2016.

The drop in is attributed to high utility bills, expansion of credit facilities to more communities in the catchment area of the bank.

The Board Chairman of the bank Mr. Larry Kwesi Jiagge speaking at the bank’s annual general meeting here at the weekend stated that the increase in corporate tax from eight percent in 2015 to 25 percent in 2016 coupled with the malfeasance on the part of some front line managers also impacted negatively on the banks performance.

He however, assured that stringent measures would be adopted to improve the situation next year.

Despite these challenges, the Mr. Jiagge indicated that earnings on assets increased by 15.4 per cent from GH¢10, 417,050 in 2015 to GH¢ 12, 028, 101 for the period.

“Total assets increased by 12. 64 percent in 2016 from GHC 13, 353, 341  to GH¢ 15, 041, 258 in 2015 adding that total deposit  accounted for 89.80 percent of the total  assets/ liabilities as fixed deposits and savings on the  Group Lending  Scheme continue to be the bedrock of the Bank’s deposit mobilisation drive,” he said.

He said an amount of GH¢ 5, 528,765 was disbursed to customers in 2016 as against GH¢ 3, 285, 280 in 2015 while total interest income increased from GH¢2, 594, 303 in 2015 to GH 3, 260, 586 in 2016 representing an increase of 25.68 percent.

Mr. Jiagge informed the shareholders that the bank had been able to meet the new minimum capital requirement of GH¢ 1,000.000 by the regulator (Bank of Ghana).

The Board of Directors have approved a dividend of GH¢ 0. 35 per share .

He said the Bank was adjudged as the best rural bank in the Volta region by the Association of Rural and Community Banks (RCB’s) and assured the shareholders that the enviable position would be maintained in order to be among the best three in the country.

He said plans were far advanced for the opening of the Denu branch in other to mobilise more funds towards growing the advance portfolio of the bank.

The Head, Legal and Compliance of the ARB Apex Bank Limited, Mr Curtis W. Brantuo, said the Apex Bank in collaboration with the Bank of Ghana have stated reviewing the Apex Banks regulations, 2006 (L1.1825) to reflect the changes in the new Banks specialized Deposit –Taking Institutions Act 2016 (Act 930) to make it more responsive to current needs.

He said the Apex Bank would continue to monitor the activities of the rural banks and urged them to consider mergers in order to enhance business operations.

Mr. Brantuo commended the Anlo Rural Bank for the achievements which he said were sufficient evidence of effective and efficient management of the resources.

By Lawrence Vomafa-Akpalu, Anloga

 

 

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