A 65% drop in post-tax profit has been recorded in 2007 by of Trust Bank Limited (TBL). According to the 2007 annual report released by the bank, profit after tax dropped from D116,134 million in 2006 to D40,468 in 2007.

This highlight in the drop of profit was blamed on the revaluation losses of D103 million. Meanwhile the total asset of the bank increased by 14% from D2.3 billion to D2.6 billion.

TBL chairman, Ken Afori Atta, informed the 10th Annual General Meeting at the Kairaba Beach Hotel yesterday that the bank suffered in 2007 due to the unprecedented and rapid appreciation of the Gambian Dalasi against major international currencies, which resulted in significant technical currency revaluation losses due to the level of foreign currency assets maintained by the bank at the time.

Biggest bank in The Gambia

According to the chairman, but for the revaluation losses, other indications are that Trust Bank had a strong performance in 2007.

“Despite the low profitability, I would like to proudly announce that with a 14% increase in assets over last year, your bank is now the biggest bank in the country in terms of total balance sheet size”  he said.

TBL’s chairman assured the meeting that steps have been taken to avoid the recurrence of such big revaluation losses in the future. He maintained that TBL is resilient and will continue to consolidate its gains in all other areas of their business.

Mr Afori Atta, recognised the recovery of bad debts as they have seen a net reduction in provision for the first time in 10 years.

On share price performance, Mr Atta said trading in Trust Bank shares on the Ghana Stock Exchange continued to be minimal in 2007, adding that the share price was maintained at 13,250 Cedis (equivalent to Ghana cedis 1.33). However, he highlighted that the bank’s shareholders increased from 967 in 2006 to 1,004 shareholders in 2007.

On dividends, he added, the board has recommended a dividend of 37.5 bututs per share, which brings the total dividend to 62.5 bututs per share. On development, he announced that the opening of the TBL Bakoteh Branch brings their total outlets to 12, thus, further consolidating their position as the bank with largest network in the country.

In his statement, Pa Macoumba Njie, the managing director of TBL, said the total operating revenue of the bank in 2007 stands at D207,283 million, as compared to D345,644 in 2006. This represents a 40% drop in operating revenue.

On the bank’s corporate social responsibility, Mr Njie said TBL continued to actively participate in promoting social development, especially in the areas of health, sports and education.

The AGM also saw the re-election of new board of directors, comprising Tumbul K Danso, the managing director of Social Security and Housing Finance Cooperation, Mustapha Njie, the CEO of Taf Holdings Company and Bai Matarr Drammeh, the president of the Gambia Chamber of Commerce and Industry.