Asante Akyem Rural Bank posts satisfactory growth


The Asante Akyem Rural Bank Limited at Juansa, in the Asante Akyem North Municipality of Ashanti Region, has posted a satisfactory growth in all financial indicators for the 2016 year under review.

The bank recorded a total deposit of approximately GH¢31.31million in 2016 as against a little over GH₵27.37million in the previous year, representing 14.4 % growth.   This was as a result of a mobilisation strategy put together by the bank’s management and staff, coupled with public confidence in the bank and the commitment of its cherished customers.

The net worth of the bank increased by 11%, from GH₵5.88 million in 2015 to GH₵6.53 million in 2016. Similarly, Total Assets grew by 14% during the same period from GH₵37.8million to GH₵41million.

The bank made a profit before tax of GH₵11.68million in 2016 as compared to GH₵1.036million in 2015, representing an increase of 12.71%.

The Chairman of the Board of Directors, Mr. Francis Opuni Sekyere, announced this at the bank’s 30th Annual General Meeting of shareholders held recently at the bank’s head office in Juansa.

According to him, Ghana’s economy experienced slowed growth during the year under review, with the backdrop of an IMF fiscal consolidation programme and rising debt. With a GDP growth of 3.9 percent from 3.4 percent in 2015, general economic activities in the country could best be described as modest.

The country’s macroeconomic indicators did not favour business, leading to high cost of service delivery with very minimal, marginal returns.  Expectedly, the rising cost of living left customers with no option but to slow the pace at which they keep their excess funds with the banks – which significantly reduced the demand for credit facilities. Amidst all these challenges were also the high lending rates and currency depreciations.

Similarly, the run-up to the 2016 general elections created a lot of uncertainties in the business community – of which Asante Akyem Rural Bank was no exception.

In spite of the challenging macroeconomic and political environment that pertained during the reviewed year, the bank managed to pull out yet another impressive operational performance in all financial indicators for the year under review.


ITEM 2016






Deposits  31.31  27.37 14.4
Investment  14.82 12.62 23.39


Share Capital    516,483   442,843 16.63
Loans & Advances   14.10  13.51  


Net worth  6.53  5.88 11.05


Profit before tax   1.168  1.036 12.71
Total Assets  41.06  35.74  



The board has recommended dividend payment of GH₵203,324 for the year under review at GH₵0.0039 per share as compared to GH₵170,026 in 2015 – representing an increase of 19.58% for 2016

The bank continues to be alive to its corporate social responsibilities. In the year under review, it made total donation and scholarship offers of GH₵36,499 to support education, health, sanitation, and agriculture – including farmers’ awards and other areas of need in and around its catchment area.

The General Manager, Mr Atta Gyamfi, in an interview with Business & Financial Times said the bank’s business focus in 2017 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.

The bank’s business model, according to the General Manager, is still tailored for the Micro Small and Medium Enterprises, and will push for more market penetration as it develops new and better products as well as trusted relationships with clients of the bank.

He emphasised that the bank will continue to pursue a massive share and deposit mobilisation, follow stringent cost-reduction policies, strengthen internal control measures, and develop the human capital to meet demands of functioning profitability in the competitive rural banking environment.

 In a speech read on behalf of the Apex Bank MD, Mr. Kojo Mattah, Mr. George Annor – the Ashanti Regional Manager – revealed that a recent review of the RCBs’ investments profile indicated a significant concentration of funds in some financial institutions of the country. According to him, though these investments promise to be high-yielding, unregulated concentration of funds in some of the financial institutions could lead to an industry-wide liquidity crisis if any of such institution experienced operational challenges.

In view of this, Mr. Mattah has therefore advised that RCBs should rather invest their funds in safe government and Bank of Ghana instruments to ensure a strong liquid reserves position for effective financial intermediation.

Leave a Reply