Ghana: Kwaebibirem Bank Pays Dividends to Shareholders

In spite of some negative economic challenges like the depreciation of the cedi to the dollar and other major currencies, as well as the rise in the loans default rate in 2011, which impacted negatively on profitability, the Board of directors of the Kwaebibirem Rural Bank Limited have proposed a dividend of GH¢0.0012 per share, amounting to GH¢30,000 to its shareholders.

Delivering his report at the 27th Annual General Meeting (AGM) at the Kade Presbyterian Church of Ghana Hall, the Chairman of Board of Directors, Mr. A.A Oduro, said competition from the universal banks, savings and loans companies, and other financial institutions in the catchment area of the bank, adversely affected profit maximization in the year under review.

He mentioned that on the local front, the oil palm industry's activities with the bank was adversely affected, to the extent that farmers in the industry, who constitute about 65% of loan beneficiaries, were unable to repay the facilities advanced to them.

He disclosed that farmers whose income passed through the bank in 2010, and were granted facilities, now received cash payment for the sale of their Fresh Fruit Bunches (FFB), and this had blocked a lot of loaned funds and its interest income thereof, thereby reducing profitability.

The bank also incurred substantial cost through its computerization efforts, as computers, air conditioners and other ICT infrastructure were purchased and installed at all the agencies to ensure the smooth running of the bank's automated process.

In spite of all the numerous challenges, the Chairman indicated that the bank was able to make a reasonable profit, and still remained financially sound.

Breaking down the profit of the bank, Mr. Oduro said a total deposit of GH¢7,637,484.84 was realised in 2011, as against GH¢5,963,973.86 in 2010, showing an increase of 28.06%.

This development, the Chairman said, brings to the fore the confidence that client reposed in the deposit mobilization of the bank.

Under advancement, he stated that total advances, amounting to GH¢4,336,510.23 was recorded in 2012, as compared to GH¢3,576,503.25 in 2012, a percentage increase of 21.25, representing 76.12% of the total deposits in the year under review.

The bank's investment in treasury bills increased from GH¢1,704,237.16 in 2010, to GH¢1,831,188.34 in the year under review, representing a 7.45% rise, and in the previous year returns on investment fell in and the board decided to extend more credits to the bank's valued customers for the expansion of their businesses, hence the marginal increase in the investment portfolio.

Total assets of the bank, however, rose from GH¢7,636,251.75 in 2010, to GH¢9,517,839.68 in the year under review, indicating an increase of GH¢1,881,587.93 or 24.64%.

Ads by Google

Copyright © 2012 Ghanaian Chronicle. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.