Bawjiase Area Rural Bank hits new milestones with remarkable year-end profits.

In Awutu Bawjiase, Central Region, the Bawjiase Area Rural Bank nearly doubled its pre-tax earnings, rising from GH₵379,286 in 2008 to GH₵618,460 in 2009. The institution’s total deposits also saw improvement, moving from GH₵4,102,813 in 2008 to GH₵5,142,988 in 2009, while its total asset base grew from GH₵5,524,121 in 2008 to GH₵7,403,771 the following year, marking a 34 percent increase. Board Chairman Mr. Emmanuel Osei shared these results during the bank’s 20th Annual General Meeting of shareholders held at Awutu Bawjiase over the weekend. He noted that the bank committed GH₵2,438,220 into government bonds and various securities in 2009, compared to an investment of GH₵1,812,270 during the preceding year.

The bank further provided GH₵3,661,447 to its clientele during the period under review, an increase from the GH₵2,767,705 issued in 2008 as loans and advances, with 75 percent of these funds allocated to women through a microfinance program.

The Chairman also mentioned that the bank’s share capital climbed from GH₵249,148 in 2008 to GH₵550,000 in 2009. Consequently, a total dividend of GH₵100,000 was distributed to shareholders in 2009. Mr. Osei reported that GH₵520,000 was utilized for the development of a head office facility, which is currently at 90 percent completion. He pledged to shareholders that the staff at the Bawjiase head office would transition into the new building before the year concludes. Additionally, the bank set aside GH₵11,428 for a scholarship fund aimed at supporting gifted but underprivileged students in the Awutu Senya District. Mr. Eric Osei-Bonsu, Managing Director of ARB Apex Bank, praised the bank for its excellent results and encouraged investors to purchase more shares to boost the capital, according to a speech read on his behalf. He reaffirmed his suggestion that rural and community banks establish specialized desks for Information Communication and Technology (ICT), share registry oversight, microfinance, transaction reconciliation, marketing research, and administration to strengthen their operations.

Mr. Osei-Bonsu emphasized the necessity for Rural and Community Banks to consider cooperative mergers and acquisitions as a viable strategy to survive the intense competition and volatile environment currently facing the banking industry.