Atwima Mponua Rural Bank Makes Progress

The Atwima Mponua Rural Bank Limited at Toase in the Atwima Nwabiagya District of Ashanti Region has posted a very remarkable performance in almost all financial indicators in the 2010 year under review. The Bank put up a very credible performance in the areas of Deposits, investments, Advances, Total Assets, shareholders funds and stated capital. These and more were made known by the Chairman of the Board of Directors, Mr. Kofi Ofori, during the Bank�s annual shareholders� meeting held last Saturday. According to him, the Bank registered a very satisfactory performance in all the performance indicators, in spite of the major economic challenges posed by heightened local competition as well as the many negative effects on the operations of the Bank. He mentioned that the macroeconomic fundamentals of the economy improved significantly as price stability held firm. Inflation steadily declined from 14.78% in January to 8.58% by December 2010. The Monetary Policy Committee reduced the base-rate from 18.0% to 13.5% by the same period. The improvement in the fiscal situation resulted in lower government borrowing and thus contributed to the reduction in Treasury-bill rates. The effects of the performance of the national economy affected the Bank in several ways. These include the decline in investment income which over the years had contributed greatly to the profit of the Bank, and the consistent decline of the base-rate forced interest rates on Loans and advances to decline. The Bank however recorded a profit of approximately GH�204,800 in the year under review as against GH�322,700 representing a percentage decline of 36.54%. The Board Chairman stated that the decline was as a result of the sharp decline of discount rate on Treasury-bills from 19.68% in January to 11.88% in December, 2010. The income from profit, according to the Board Chairman, was not enough even though the Bank realised a 50.19% increase in investments. In view of this, the Board has decided to diversify its investments by concentrating on granting more good loans instead of increasing its investments in Treasury-bills and Fixed Deposits with other financial Institutions. 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�48,474.08 was spent in this direction Areas that benefitted include education, churches and scholarship awards to needy but brilliant students who hail from the Bank�s operational territories. The Directors of the Bank have recommended dividend payment of GH�0.0142 per share for 2010. The total dividend proposed for the year under review is GH�51,247.97 which represents 25% of the total net profit for the 2010 financial year. Finally, he took the opportunity to express the Board�s gratitude to the Bank�s cherished and treasured customers, without whom indeed they would not be in business. He further extended his appreciation to Management and Staff of the Bank for their support. He also thanked all other Stakeholders for their immense contribution and, finally, his colleagues on the Board for their visionary direction.