Drobo Community Bank makes profit

•   Profit

• Profit

The Drobo Community Bank Limited (DCBL), has declared a net profit of GH¢66, 640.00 for the 2014 financial year.

Comparatively, the amount was 12.07 per cent below what the bank obtained in 2013, which was GH¢75,791.00.

The DCBL said its deposits increased by 9.02 per cent, as 2014 was GH¢3,183,489.00 as against GH¢2,920,226.00 mobilised in 2013.

A GNA report said that Wilson Benneh, Chairman of the Board of Directors, announced this at the bank’s 16th annual general meeting (AGM) of shareholders at Drobo in the Jaman South District of the Brong-Ahafo Region.

He said the bank’s stated capital increased by 1.74 per cent from GH¢281,112.00 in 2013 to GH¢286,006.00 in 2014.

During the year under review, the bank approved and disbursed an amount of GH¢1,913,697.00 as loans and advances, indicating 8.23 per cent increase of GH¢1, 768 , 11 for 2013, he said.

Short term investments, however, decreased by 31.31 per cent from GH¢846,823.00 in 2013 to GH¢581,703.00 in 2014.

Mr. Benneh attributed the bank’s decrease in profit and other operational performances to a number of unfavourable economic factors, both globally and domestically.

He cited that the Ghanaian economic activities slowed down due to a rapid depreciation of the cedi, and the energy crisis, while “according to the Ghana Statistical Service, real Gross Domestic Product (GDP) grew by 4.0 per cent, compared with 7.3 per cent in 2013”.

The board chairman said another operational performance setback was the experience of unhealthy, abnormal banking competition, saying “the proliferation of so called investment companies which offered extremely high, unsustainable interest rates to their customers in the bank’s operational area posed a great challenge to our operations”.

Mr. Benneh maintained that the bank’s expansion programme was on course, as plans were far advanced to open another agency in the central business district of Sunyani, in addition to the Fiapre Agency.

Mr. Kwadwo Aye Kusi, Managing Director of ARB Apex Bank Limited, in a speech read on his behalf, said the performance of the bank in the rural banking industry amidst the stiff competition in the financial services industry in general, required consistent management of their resources to achieve sustainable growth.

Mr. Kusi, therefore, urged the board and management of the bank to offer innovative products, and improve customer service delivery, to remain competitive, and also take advantage of the changing trends in the economy by varying their business processes to improve their business model to take advantage of new sources of income.

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