Microfinance companies record Ghc58,830 profit

The Ghana Association of Microfinance Companies (GAMC) made a pre-tax profit of Ghc62,579 in 2013 compared with the Ghc294,516 recorded in 2012.

The association’s net profit also rose to Ghc58,830 in 2013, up from the 2012 close of Ghc293,776.

The National Board Chairman of GAMC, Mr Collins Amposah-Mensah, who disclosed this at the association’s annual general meeting (AGM) in Accra, added that the company’s assets stood at Ghc367,032 as of December 31, last year.

The performance of the company was presented to shareholders of the GAMC by the executives of the association led by its Chairman, Mr Collins Amponsah-Mensah, at the third AGM of the company held in Accra.

It was the third to be held by the GAMC, which is the umbrella body of microfinance institutions (MFIs) in the country, and was graced by executives and members.

The annual report of the association indicated that 291 out of a total of 628 MFIs, representing four per cent, had been duly licensed by the Bank of Ghana (BoG).

The minimum paid up capital of the MFIs, which are considered second tier institutions under the BoG’s categorisation of financial institutions, had been reviewed from Ghc100,000 to Ghc500,000 in 2013, and that was captured in the report.

The Head of Other Financial Institutions at BoG, Mr Raymond Amanfu, said the total assets of microfinance institutions as of June 2014 was Ghc768.81 million.

He added that loans and advances granted by MFIs as of June, this year, amounted to Ghc380.28 million, representing about 1.5 per cent of loans granted in the banking industry.

“Total deposits mobilised during the period, on the other hand, stood at Ghc385.93 million, with borrowings amounting to Ghc204.28 million.

He added that the central bank had instituted periodic submission of returns by the microfinance institutions as part of surveillance efforts aimed at ensuring timely analysis of events in the financial sector.

“This gives the regulator early warning signals to trigger an on-site examination, which involves physical presence,” Mr Amanfu said.