He said this in an address read on his behalf at the 27th annual general meeting of shareholders of the Nwabiagya Rural Bank at Barekese in the Atwima-Nwabiagya District.
The ARB Apex Bank Limited is a mini Central Bank in Ghana for the RCBs financed mainly through the Rural Financial Services Project (RFSP), which is a government of Ghana project to holistically address the operational bottlenecks of the rural financial sector with the aim of broadening and deepening financial intermediation in the rural areas.
Mr. Aye-Kusi said RCBs needed to conform to banking standards to avoid conflict of interest to sustain depositors’ confidence.
They should also take steps to strengthen their credit management structures to make their “loan books healthy”, he added.
Presenting his report to the stakeholders, the Chairman, Nana Owusu Sarfo Anwona, said the bank’s profit dipped last year, as returns on its operations dropped to GH¢2,296,367.00 from the year 2013 figure of GH¢2,415,570.00.
He said the unfavourable business environment — high inflation, frequent power outages and high utility charges, was to blame.
Nana Anwona said despite the negative profit growth, it showed strong performance in savings mobilisation with total deposits hitting GH¢46,891,334.00 from the previous total of GH¢39,596,830.00.
At the same time the bank’s investments rose from GH¢17,050,000.00 to GH¢24,045,447.00.
He said there was also significant increase in both assets and capital adequacy ratio, during the period.
Total assets stood at GH¢62,374,810.00 as against GH¢53,393,199.00 in 2013, whiles its share capital shot up to GH¢1,839,428.00 from GH¢1,650,909.00.
Nana Anwona told the owners of the bank that the size of loans and advances granted to customers, however, reduced from GH¢24,381,766.00 to GH¢24,299,384.00.
As a good corporate citizen, he said the bank continued to provide assistance by way of scholarship awards to students, support to education and health institutions, as well as community development programmes.
The Board recommended dividend payment of GH¢0.035 per share.
Nana Dr. Akowua Boamah, President of the Ashanti Chapter, Association of Rural Banks, advised rural banks to live up to their corporate social responsibilities.