Nsoatreman Bank Introduces New Product

The Nsoatreman Rural Bank in the Brong Ahafo Region has introduced a new savings product called “Adesua Ahoboa,” which translates to “Preparation Towards the Child’s Education.” The initiative is designed to assist parents and guardians in setting aside small amounts of money, which they might consider insignificant, to support their children’s education. To open an account under this product, clients need only GH¢1, and the account offers a high interest rate.

During the launch of the product in Jinjini, a farming community in the Berekum District, Mr. Philip Appiah-Mensah, the bank’s General Manager, explained that the product aims to ease the financial burden parents face when trying to pay for their children’s admission to senior high schools (SHS). In addition to covering admission and school fees, the savings can also be used to purchase learning materials and pay for the West Africa Senior School Certificate Examination (WASSCE) registration.

Mr. Appiah-Mensah noted that many parents in rural areas struggle to afford WASSCE registration fees, causing some children to drop out of school. He added that, in trying to raise money for school fees, some parents fall prey to moneylenders who charge exorbitant interest rates.

The product is structured as a trust account, with the parent managing it in the child’s name. Once the child turns 18, they can take full control of the account. Unlike standard current or savings accounts, clients are required to save for approximately one and a half years before being eligible to withdraw or access loans from the “Adesua Ahoboa” account. Additionally, children whose parents hold these accounts are eligible for the bank’s scholarship scheme.

Mr. Appiah-Mensah emphasized that this product will help gather unused funds outside the banking sector and encourage young people to develop a savings habit.

A), April 2, GNA – Nsoatreman Rural Bank, located in the Sunyani West District of the Brong-Ahafo Region, reported a net profit of GH¢126,893.33 in 2011, representing a 24.85 percent increase compared to GH¢101,632.00 in 2010.

By the end of the 2011 fiscal year, the bank’s total deposits reached GH¢4,882,758.52, up from GH¢4,037,517.36 in 2010. These figures were disclosed by the Board Chairman, Mr. Kofi Agyemang, at the bank’s 23rd annual general meeting in Nsoatre. He also mentioned that the bank’s investments grew from GH¢1,051,000.00 in 2010 to GH¢1,418,000.00 in 2011, while total assets for the fiscal year amounted to GH¢6,248,181.64.

Mr. Agyemang announced that the bank had received approval to pay dividends to shareholders who met the current share capital requirements. In 2010, GH¢19,886.42, or 20 percent of the bank’s profit, was allocated for dividends, with a dividend-per-share rate of GH¢0.02. For 2011, a total dividend of GH¢11,125.67, which is 10 percent of the post-tax profit, was declared at a rate of GH¢0.025 per share.

He encouraged customers and shareholders to increase their shareholding to strengthen the bank’s financial position and mitigate risks. Mr. Agyemang emphasized the growing competition in the banking industry, warning that banks that fail to recognize the impact of competition risk falling behind.

He praised customers who had repaid their loans but warned defaulters to settle their debts, as the bank would take all necessary measures to recover them. He also assured that the bank had not abandoned its scholarship program, which supports the children of loyal customers attending Senior High Schools.

Vice Chairman Mr. Daniel Hinneh urged the public to do business with the bank’s branches in Techiman, Sunyani, Jinijini, Chiraa, and Yamfo to more easily access loans.