The Odotobri Rural Bank Limited at Jacobu in the Amansie Central District of the Ashanti Region has posted? a very remarkable performance in all financial indicators for the 2011 year under review.

The Bank posted a net profit of GH?956,812 in the 2011 period under review as against a little over GH?722,800 in the previous year, representing a satisfactory growth of 32.37%.

The Bank?s investments in Treasury bills and other short-term securities experienced an?? increase of 53% during the period under review, from about GH?7.04million in 2010 to a little over GH?10million in 2011.? This was the result of a deliberate effort by the Bank to diversify its portfolio and reduce its risk exposure.

The Bank recorded a total deposit of about GH?23.6million in 2011 as against a little over GH?15.8million in the previous year, representing 49.73% growth.?

This was due to the intensified mobilisation drive pursued by directors and management, coupled with the ever-increasing public confidence in the operations of the Bank.

The Chairman of the Board of Directors, Mr. Johnny Owusu Boadi, announced this at the 25th Annual General Meeting of shareholders held last Saturday at St. Peter?s Catholic Church at Jacobu in Ashanti.

According to him, the Bank registered a very satisfactory performance in all the performance indicators in spite of a number of challenges posed from the operating environment.

Some of the challenges included the spill-over effect of the global economic downturn and falling interest rates on money-market instruments, as well as the stiff competition from the foreign banks which have been licenced to operate in the country.

In respect to these difficulties which had to be surmounted, the Bank redefined its operational strategies considering its strength, weaknesses and the external threats and opportunities to mitigate the far-reaching effects.

The Bank?s total assets recorded a satisfactory growth of 46.17% from a little over GH?19.4million in 2010 to approximately GH?28.4 million in 2011. ?

?The Bank?s share capital increased from a little over GH?228,300 in 2010 to approximately GH?283,660 in the 2011 year under review, representing a growth of 24%%.

Even though Odotobri Rural Bank has met the Bank of Ghana?s prudential capital requirement of GH?150,000, shareholders were still encouraged to buy more shares.

During the period under review, the Bank extended total loans and overdraft facilities of GH?10.4million to clients representing an increase of 45.44% over the 2010 figure of approximately GH?7.16million. These went to agriculture, small-scale industries, transport, and trading among others.

The Board Chairman further made an appeal to all loan beneficiaries who have defaulted repayment to make frantic efforts to repay and enable others to benefit from such facilities.

He quickly added that the Bank has also initiated measures to take legal action against recalcitrant loan defaulters, as well as publish their names and photographs in the dailies if they continue to remain indifferent to their indebtedness.

The Directors of the Bank have recommended dividend payment of GH?0.0025 per share for 2011. The total dividend proposed for the year under review is GH?175,644, which represents 20% of the total net profit for 2011 financial year.

The Bank continued to offer assistance to communities and institutions within its operational territories in terms of community development projects. A total amount of GH?45,650 was spent in this direction and as part of the Bank?s corporate social responsibility.?

Areas that benefitted included education, health, security, sports and district Farmers? Day celebration. Others include Otumfuo Charity Foundation, Ashanti Regional Police Command, Kumasi and Bekwai Traditional Council.

The Bank opened a new mobilisation centre this year at Roman Hill in Kumasi, and plans are very advanced for the Bank to get their own premises to house the Krofrom branch. A process has also been initiated to open a mobilisation centre at Agric Nzema, also in Kumasi.

The Board Chairman in his concluding remarks acknowledged the commitment of the Board, Management and staff to the objectives of the Bank — recounting that their individual and collective efforts have culminated in the significant improvements of the Bank?s operational results for 2011.

In appreciating the sterling performance of the financial year, he however sounded a note of caution to the few who are not working as expected of them to begin nurturing other ideas to change for the better.

By Seth KRAMPAH, Jacobu

View the original article here


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.