Sonzele Rural Bank’s Profit Drops In 2013

Ghana-cedi1The Sonzele Rural Bank has recorded a seven per cent drop in its gross profit for the 2013 financial year, in spite of out-standing performance in the general operations of the bank.

From a total of Ghc389, 606.00 in 2012 its profit before tax dropped to GH¢360,424.00 in 2013 representing a seven per cent drop.

However, the bank showed significant improvements in the areas of deposits, loans and advances, total assets, shareholder fund and total investments.

In the area of deposits, the bank recorded an increase of GH¢1,165,574.00 representing 16 per cent increase over last year’s figure of GH¢7,165,574.00, while loans and advances issued for the same period jumped from GH¢942,154.00 to GH¢1,222,648.00 representing a 29 per cent increase.

On total assets, shareholders fund and total investment the figures jumped from GH¢9,330.307.00, GH¢1,359,699.00and GH¢4,887,043.00 to GH¢11,297,107.00, GH¢1,647,137.00 and GH¢7,307,043.00 representing 21per cent and 50 percent increase respectively.

Delivering his report at the 24th Annual General Meeting (AGM) held here at the weekend, the board chairman of the bank Mr. Albert Bosoro said the drop in profit was as a result of the country’s economic difficulties.

He said in spite of the drop in gross profit, the impressive performance in the other operations of the bank indicated that it had a brighter future.

Mr. Bosoro said the bank continued to chalk up success with the achievement of 30 per cent growth in its operating income for the year under review.

He said in spite of the difficult economic situation prevailing in the country, the bank continued to live up to its corporate social responsibilities towards the communities within which it operated.

“Wherever Sonzele operates, your bank has been driven by a philosophy to be a partner of those communities. Towards this, we have contributed in diverse ways to communities where we serve. Contributions have gone into sponsoring festivals which ahs helped keep our culture alive and preserved,” he added.

The board chairman explained that apart from contributing towards festivals in the district, the bank had also sponsored the educational, agricultural, water and sanitation, sports and health needs of those in the communities and more.

Touching on the challenges that confronted the bank during the year under review, he said the influx of non-banking financial institutions and their unrealistic interest rates in the district continued to be an issue of major concern to the bank.

He said though the operations of such financial institutions were welcomed since it provided competition, the unrealistic interest rates some of these institutions offer made it risky for the poor farmers in the district.

Mr. Bosoro said despite these challenges, the bank would continue to sustain its performance in order to position itself among the top echelon of the rural bank industry in the country and also deliver attractive returns on its investments.

From Cliff Ekuful, Jirapa

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