East Akim Rural Bank posts profit

 

The East Akim Rural Bank at Osiem in the Eastern Region posted a profit before tax of GH¢374, 649 last year.

This is against a profit of GH¢331,325 recorded in the previous financial year.

In the same period under review, the bank's total assets rose from GH¢11 million to GH¢15 million while total deposits also shot up from GH¢8.3 million to GH¢10.7 million.

The acting Chairman of the Board of Directors of the bank, Paul Yaw Asirifi, who announced this, said the modest success of the bank was made notwithstanding the dire economic challenges the country was facing presently.

Asirifi, who was speaking at the 5th Annual General Meeting of the bank at Osiem on August 6, said due to the profit posted, the bank was able to give out loans and advances totalling GH¢6.4 million to its customers last year.

According to him, since the bank was located in the community where agriculture was the main occupation of the people, the bank as part of its corporate social responsibility also sponsored the Abuakwa North Best Vegetable Farmer at the 38th Farmers Day held at Tontro on November 28, last year.

Economic hardship

Asirifi said the post-COVID-19 and the impact of the Russia-Ukraine war had contributed to the high inflation in the country, a development which had compelled the Bank of Ghana to increase its policy rate to 29 per cent.

That, according to the acting Board Chairman, would increase both the bank’s interest income and interest expenses for the period.

It will also have an impact on loan repayment, while the rise in interest expenses would affect borrowing.

IMF bailout

Asirifi, however, expressed the hope that Ghana's International Monetary Fund (IMF) bailout would enable the economy to steadily recover in the years ahead.

He gave an assurance that the board and management of the bank would continue to implement innovative strategies to mitigate the impact of all challenges to ensure the profitability of the bank's operations.

Asirifi appealed to shareholders to continue to exercise patience with the bank since a strong foundation had been laid for future profitability.

That, he indicated, would position the bank to pay dividends to shareholders for their sacrifices.

He also asked shareholders to buy more shares and serve as ambassadors of the bank to encourage more people to invest in it.

Asirifi, on behalf of the Board of Directors, management and staff, expressed his gratitude to the shareholders and customers for their support and loyalty since the bank's inception.

Dividends payment

The Eastern Regional Manager of the ARB Apex Bank, Nana Frimpong, who represented the Managing Director of the bank, Alex Kwasi Awuah, told shareholders that the decision not to pay dividends was a result of directives from the Bank of Ghana.

He commended the bank for its successes and urged the shareholders to continue to support it.