Wenchi Rural Bank makes profit

Business News of Wednesday, 3 April 2013

Source: Graphic Business

The Wenchi Rural Bank Limited in the Brong Ahafo Region recorded a profit of GH¢78,346 in 2012 as against a loss of GH¢176,673 in 2011.

The bank was able to reverse this trend as a result of hard work and the prudent measures put in place by management. The bank is in its second year of operations. Mr Yaw Odame-Darkwa, the Chairman of the Board of Directors of the bank, said this at the first annual general meeting (AGM) of the bank at Wenchi on Saturday.

“I must emphasise that most banking experts told us that by convention we were to record our first profit after five years of operations but through dint of hard work we were able to record profit in our second year of operations”, he said. The Board Chairman said the total assets of the bank also grew from GH¢1,985,072 in 2011 to GH¢3,973,657 for the year under review which represent an increase of almost 100 per cent while total deposits also grew from GH¢1,872,024 in 2011 to GH¢3,630,590 representing an increase of 93 per cent.

Mr Odame-Darkwa said the bank granted loans to the tune of GH¢2,437,894 in the year 2012 which represent an increment of 138 per cent granted in 2011, adding that the bank’s credit team was able to appraise, disburse and achieve above 98 per cent recovery rate during the year under review.

He said the bank’s share capital also rose from GH¢163,185 in 2011 to GH¢164,825 in 2012, he therefore appealed to all shareholders to increase their shareholding to make the financial position of the bank very strong.

Mr Odame-Darkwa noted that the bank would continue to work hard to maintain a highly qualified staff and its customers to make a difference in the rural banking industry. He announced that the bank had earmarked a total of GH¢3million to support 4,000 women engaged in agriculture and other income generating activities in its catchment areas in the Brong Ahafo and Northern regions, this year.

The move is to help inculcate the culture of savings in rural women and reduce poverty in the bank’s catchment areas and the country as a whole. He said last year the bank supported 1, 500 women in both the Brong Ahafo and Northern regions with GH¢1.5million under its micro finance programme aimed mainly at rural women and the active poor in its catchment areas and hoped to assist 4,000 women this year under the scheme.

Mr Odame-Darkwa said it was the vision of the bank to use micro finance as a tool to reduce poverty in its catchment areas and the country as a whole, hence the bank’s decision to extend attractive and affordable credit facilities to women and the active poor in its areas of operations.

The board chairman of the bank said the bank had as its vision to use micro finance as a tool to reduce poverty in Brong Ahafo and Ghana as a whole.

He said the bank was given approval by the Bank of Ghana to commence business in June, 2012 but did not start full operations until September of that year, adding that the bank now had over 14,000 clients as of December 31, 2012.