Shareholders of Trust Bank Gambia Limited have realised significant growth in their equity and dividend yield as the bank has made substantial net profit of D116 million for the year ended 31 December 2006 due mainly to prudent and efficient management of its operations.

Depositors and clients could also be rest assured that the bank is liquid enough to meet their claims and its short-term obligations owing to its stout acid asset or cash and bank balances of D713,532 against depositors’ current accounts of D703,407.

Shareholders’ earnings and dividend per share of D3.87b and D1.25b respectively, have left them with a blithe heart while even sleeping partners could dream of a blissful year ending ahead. The overall performance of the bank has also sent a clear message to potential investors that TBL is a veritable ground to plough their monies or capital.

The bank’s profit before tax increased by 74% from D103 million to D179 million and after tax profit also rose to 74% from D67 million to D116 million.

Basic earnings per share increased by 74% from 223 bututs to 387 bututs, while dividend per share after adjusting for dilution following the bonus issue was flat at D1.25b.

Shareholders funds increased by 20% from D208 million to D250 million. Loans and advances grew by 14% to D784 million from D688 million. Deposits registered an increase of 17% to D1.9 billion from D1.6 billion. The total assets of the bank increased by 17% to D2.3 billion from D1.99 billion.

Ken Ofori-Atta, the bank’s Chairman, in his statement at the bank’s 9th Annual General Meeting (AGM) held at the Kairaba Beach Hotel on Thursday, said: “The banking industry has become more competitive following the recapitalisation of banks in 2005 and the entry of Access Bank as the 8th bank in The Gambia. Despite these, I am happy on behalf of the Board to announce another very successful year for your bank.

 “Our decision to clean the balance sheet of a significant amount of non-performing loans and to institute more stringent credit policies has led to a significant recovery in the bank’s earnings from the 52% drop recorded in 2005. The performance of the bank last year has enabled us to reclaim the position as the biggest bank in the country in terms of net assets, deposits and loans and most importantly profitability.”

Mr. Ofori-Atta said the global economy performed strongly last year driven by strong demand from China and India that saw global trade rise by 6%. Despite strong Asian demand, he said, commodity prices including oil prices slipped much lower especially in the second half of the year, which helped to ease inflationary pressures in the oil-importing countries.

He also said: “Significant progress has also been achieved on the local economic front, with The Gambia’s GDP estimated to have grown by 6.5% in 2006, up from 5.1% in 2005 (Source: IMF). Fiscal management also improved, though the government was unable to meet its own target. The fiscal deficit as a proportion of GDP fell from 8.6% in 2005 to 4.7% in 2006. Notwithstanding, an increased in broad money supply by 16% from 13% in 2005, inflation fell further to 1.4% from a peak of 21% in August 2003.”

Chairman Ofori-Atta noted that the easing of inflationary pressure was supported mainly by a stable exchange rate which was in itself cushioned by strong private capital inflows especially into the financial services, tourism and construction sectors of the economy.

“The biggest risks to the economy include volatile oil prices and the huge public debt burden amounting to D156% of GDP [about D800M] which is the highest in sub-Saharan Africa,” the TBL chairman said, adding that they welcomed the recent improvement in the country’s relationship with the IMF.

He said should their Bakoteh site be completed by October this year, the bank’s total number of locations would amount to12, while giving a highlight of the bank’s successful deployment of a new Flexcube banking software to all branches as well as their plan to deploy SMS and ATM banking facilities in the near term.

He also remarked on the bank’s premium interest of constantly improving its human resource as employees of the bank are regularly sent to Ghana and other places around the world for more training.

The bank has also remained steadfast in and committed to its corporate responsibility. This was highlighted in the review statement of the bank’s Managing Director, Pa Macoumba Njie.

He explained: “Your bank continues to play its vital role in the socioeconomic development of the country. We are promoting the key areas of health, education and sport development. We invested D1.3 million in a modern female ward, kitchen, drainage and laundry at the RVTH Sanatorium.

“We are also promoting excellence in education through our annual award of prizes to outstanding graduates from the University of The Gambia and also to excelling students in Basic and Senior Secondary Schools. The Bank also sponsored a fundraising gala dinner organized by the Rotary Club of Banjul to raise funds for the construction of modern science laboratories for secondary schools in the Greater Banjul area.

“We proudly contributed to Gambia’s participation in the 2006 Melbourne Olympic Games in Australia, donated handsomely to the Gambia Tennis Association and continued our sponsorship of National Athletics, Football, Basketball and Volleyball Championships for secondary schools throughout the country.”

Both MD Njie and Chairman Ofori-Atta expressed their gratitude and appreciation to customers of the bank, shareholders, employees and the Government and people of The Gambia for their support to the bank. The bank marks it 10th anniversary this year.