Avenor Rural Bank records growth in total assets

News & Reports
The total assets of the Avenor Rural Bank has increased to GH¢11,311,838 in 2015, rising 29.14 per cent from GH¢8,759,087 in 2014.

Its total investments also jumped 50.98 per cent from GH¢2,640,272 to GH¢3,986,226, thus improving its liquidity and reserve requirements, within a general performance outlook described by the ARB Apex Bank as “very impressive”.


According to a GNA report, Simon Nerro Davor, Board Chairman, announced these at the bank’s 33rd annual general meeting (AGM) at Akatsi.


The Board Chairman said the bank’s profit before tax grew from GH¢209,194 in 2014 to GH¢322,482, and this represents a 54.15 percentage jump.


He said total income also rose to 28.98 per cent to GH¢2,482,437 from the GH¢1,924,716 figure of 2014.


Gross advances also increased by 8.16 per cent to GH¢5,599,529 from GH¢5,177,172, while total deposits went up from GH¢6,780,689 to GH¢9,050,477 in 2015 – 33.47 per cent rise.


Savings deposit accounted for about 48 percent of the total deposit, while operational expenses increased from GH¢1,607,082 to GH¢2,038,653; that is 26.85 per cent.


Shareholders’ equity increased 22.67 per cent from GH¢1,704,236 to GH¢1,317,727 as a result of improved profit and additional contributions by shareholders.


Mr. Davor said it is the intention of the bank to increase upon its seven operational agencies by opening a branch in Ashiaman.


He said the bank is improving its shareholder value, with key strategies directed at marketing, staff training, an improved ICT platform, to particularly polish internal risk management and control to remain buoyant in the rather difficult environment.


Mr. Davor appealed to shareholders to increase their portfolios to enable the bank meet the Bank of Ghana’s GH¢500,000 stated capital requirement by December this year and GH¢1 million by December 2017.


Mr. Davor said the bank has met all supervisory demands regarding the minimum capital, capital adequacy ratio and reserve requirements.


Mr. Charles Pinkrah, Head, ICT, ARB Apex Bank, on behalf of the Apex Bank’s Managing Director, Kwadwo Aye Kumi, said the Avenor Bank must sustain the “impressive performance”, by maintaining a high compliance environment in regulatory, statutory and legal regimes for RCBs.


He urged the bank to ensure prudence in compliance, deposit mobilisation, ICT, quality loan and control and risk management in areas of fine balancing act between profitability and liquidity, keeping close eyes on credit risks.


He entreated shareholders and customers to remain firm behind the bank’s growth agenda.


Mr. Pinkrah said the Apex Bank will play its monitoring and support roles for viability of RCBs to contribute to socio-economic development of their catchment areas.


He said RCBs need to build customer service into performance contract or job description of staff and tied it to periodic staff appraisals.


The meeting approved a dividend of GH¢0.0045 per share totaling GH¢62,815.25 for the year.