Builsa Community Bank Records Significant Growth

The Builsa Community Bank, (BUCOBANK) recorded a pre-tax profit of GH¢640,174 in 2013 as against the GH¢406,353 it realised in 2012, representing a percentage increase of 57.55.

Mr. Pascal Ayaric, Chairman of the bank’s board of directors made this known, in an address, on Saturday, at the 14th annual general meeting (AGM) of the bank, at Sandema in the Upper East Region.

The directors, however, did not recommend the payment of dividend to shareholders for 2013 even though much profit was realised.

This became necessary in view of the fact that BUCOBANK had not met the new minimum capital requirement set by the Bank of Ghana for Rural and Community Banks (RCBs). The minimum capital requirement for RCBs was raised from GH¢150,000 to GH¢300,000, he said.

He said under section 30 of the Banking Act 673 of 2004, a bank could not declare dividend on its shares unless it had satisfied the minimum capital requirement set by the central bank.

According to the board chairman, total deposits of the bank rose from GH¢7,392,144 in 2012 to GH¢9,015,804 in 2013, symbolising an increase of 21.97 per cent while the total assets of the bank increased to GH¢12,469,803 in 2013 from a figure of GH¢10,179,507 in 2012, signifying an increase of 22.50 per cent.

Mr. Ayaric also announced that loans and advances of the bank increased from GH¢6,280,069 in 2013, representing a percentage increase of 18.94 while GH¢20,943 was spent in fulfillment of its corporate social responsibilities in 2013 as compared to the GH¢3,457 in 2012.

In a speech read on his behalf, Mr. Kwadwo Aye Kusi, Managing Director of Association of Rural Banks (ARB) Apex Bank, commended the board and management of Bucobank for a wonderful performance in 2013, adding that out of a total of 136 banks nationwide, Bucobank was ranked 38th.

Mr. Kusi appealed to shareholders of the bank to increase their shares to enable the bank to improve upon its financial position to expand its activities, and also urged borrowers from the bank to repay their loans on time.

Mr. Daniel Syme, the Deputy Regional Minister, appealed to chiefs in the area to prevail upon the people to curtail their alcohol consumption in order to enhance their productivity, saying that it was only when they were productive that they would be credit-worthy and make savings at the bank.

He stressed the need for district assemblies to help in the creation of awareness among the people to cultivate the habit of savings.

The Deputy Regional Minister reiterated that the government was committed to developing the private sector to serve as the engine of growth.

Alhaji Sheriff Adams, president of ARB, Upper East chapter, advised Bucobank to introduce more customer-friendly policies and products to enable its cherished customers to remain loyal to the bank. From Ibrahim A. Mohammed, Sandema.

 

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