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Odotobri Rural Bank records an increase in profit
 
Posted on: 21-Jul-2013         Source: GNA
 
 
 
Odotobri Rural Bank in the Amansie Central District recorded a 65 percent increase in profit for 2012 by amassing GH¢1,584,664.57 as against GH¢954,812.40 for the previous year.

This performance was achieved as a result of prudent management strategies that slowed down the increase in operational expenses of the bank.

Mr Johnny Owusu – Boadi, the Board Chairman, announced this at the 26th annual general meeting of shareholders of the bank over the weekend.

The bank’s total assets also witnessed a rise of over 41 percent, moving from GH¢28,520,000 in 2011 to GH¢ 40,300,000 in 2012.

Deposits also rose to GH¢33,815,000 in 2012 as against GH¢23,669,000 in 2011 recording an increase of 42.9 percent.

Mr Owusu – Boadi said investments in treasury bills and other short term securities experienced an increase of 43.78 percent during the period, adding that, “this was a deliberate effort by the bank to diversify its portfolio and reduce its risk exposures”.

The bank also extended total loans and overdraft facilities of GH¢10,405,000 in 2011 to GH¢14,820,000 in 2012 representing an increase of 42.4 percent.

The Board Chairman, however, expressed concern about poor performance of the bank in the Akuafo cheque system, where cocoa purchases are made, as the bank managed to purchase only GH¢48,995.00 during the year under review.

Mr Owusu – Boadi said the year was good for the bank as it won a number of awards in the Ghana Club 100 and place 9th in the Ashanti Financial Services Excellence Awards with the bank’s Chief Executive Officer. S. B. Ahmed receiving an international award.

The Managing Director of the ARB Apex Bank, Mr Kwadwo Aye Kusi in a speech read on his behalf, praised the bank for its “commendable performance for the year 2012”.

He said the Odotobri Rural Bank maintained its rating as a strong bank based on the first quarter 2013 report of the Efficiency Monitoring Unit of the Apex Bank”.

The Managing Director urged the bank to put in place an effective risk management policy since the banking business had become highly competitive and risky due to the pace of development in Information and Communication Technology (ICT).