Agona Rural Bank makes progress

News & Reports
The Agona Rural Bank with Its headquarters at Agona Kwanyako has declared a profit before tax of 154,586 Ghana cedis in 2016 as against GH¢110,824 in the previous year.

The total income of the bank increased from GH¢2,273,855 to GH¢2,494,608 whilst expenditure rose from GH¢2,163,031 to GH¢2,340,022.


Major Rtd Ben Donkor, Chairman of the Board of the Directors of the Bank made this known at the 31st Annual General Meeting (AGM) of shareholders at Kwanyako in the Agona East District.


He said a total of GH¢ 256,887 was meant for interest payment and GH¢60, 000 for impairment loses on the loans and advances.
The Chairman stated that the assets of the bank increased from GH¢9, 564,111 to GH¢10, 852,090, showing an increase of 13.4 per cent.


The Chairman said savings mobilisation increased from GH¢7, 885, 721 in 2015 to GH¢9,090,987 in 2016 representing 14.78 per cent.


He announced that with an increase in deposit base, the bank increased its short term investment from GH¢2,775,540 to GH¢5, 769, 350 representing 107.86 percent.


He said loans granted to a total of 828 customers amounted to GH¢3, 938,900 in the areas of Agriculture, education, construction, commerce , microfinance, school fees and rent.


Major Donkor said the bank had embarked on a vigorous share mobilisation to satisfy the minimum capital requirement of GH¢1 million share capital Bank of Ghana.


He said the Board of Directors did not recommend payment of dividend because the bank needed to satisfy the new capital requirement to enable the bank to stay in business.


The Board Chairman appealed to the shareholders to recommend potential major shareholders to purchase more shares to increase the share mobilisation to assist the bank to diversify its operation.


Mr Samuel Osei, Central Regional representative of APEX Bank said  Agona Rural Bank was the second giant among rural banks with Enyan Denkyira Rural Bank and Bawjiase Area Rural Bank as third and first respectively.


He said efforts were being made to recapitalised all distressed rural banks in the Central region to improve the development of the rural economy as part of it strategy to reduce poverty among rural folks.

Source: https://www.ghanabusinessnews.com