Amanano Rural Bank posts 160% growth in profit 

The Board Chairman of Amanano Rural Bank, Mr. Anthony Kwame Gyan, addressing shareholders at the meeting

The Amanono Rural Bank Limited, headquartered at Nyinahin in the Atwima Mponua district of the Ashanti Region, has posted a Net Profit before Tax of approximately GH₵1.2million for the 2017 financial year – representing an increase of 160% from the GH₵460,805 recorded in 2016.

The bank, notwithstanding the ‘turmoil’ witnessed in the local banking sector, managed to also grow its Total Deposits by 21.94 percent, from about GH₵28.7million achieved in 2016 to a little over GH₵35million for the 2017 year under review.

This brought the Stated Capital of the bank from approximately GH₵1.1million recorded in the previous year to about GH₵1.46million during the year under review, thus showing an increase of GH₵348,446 and marking a 31.19% increase.

The Board Chairman of Amanano Rural Bank, Mr. Anthony Kwame Gyan said: “The increase was due to the transfers of accumulated unclaimed dividend payable, proposed by the Board of Directors”.

These transfers, according to the Board Chairman, have helped the bank exceed the Bank of Ghana’s (BoG’s) minimum capital requirement set for rural and community banks (RCBs).

On the back of this development, he urged shareholders to buy more shares to inject more cash into the business and also increase their shareholdings.

He observed that this will enable the bank to realise its dream of becoming self-sufficient in the event BoG raises the Stated Capital of RCBs from its present GH₵1million.

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Additionally, Mr. Kwame Gyan – who was speaking at the 30th Annual General Meeting of the bank at Nyinahin, also noted that injecting more cash into the bank will help it to expand its operations by opening more branches while improving the current technological infrastructure.

He said the bank competed favourably in the 2017 financial year, and is advancing in strength as indicated in the table.

Given the bank’s focus on and support for farmers, it supported cocoa purchases of licenced cocoa buying companies. A total of GH₵56,302,375 worth of cocoa was purchased in the 2017 cocoa season as compared to GH₵50,351,024 recorded in 2016. This shows a percentage increase of 11.82 percent.

In line with the bank’s Corporate Social Responsibility strategy, a total amount of GH₵114,671 was spent toward fulfilling its part of social obligation to communities in and around its catchment areas in 2017.

Mr. George Annor, speaking on behalf of Mr. Kojo Mattah – the Managing Director, ARB Apex Bank Limited – at the ceremony, urged the bank’s Board of Directors to continue with the strategic direction set for the bank.

He added that they must ensure that it becomes stronger in the years ahead for the benefit of all stakeholders.

He announced that forty-seven out of the one hundred and forty-one banks had complied with the GH¢1,000,000 minimum capital requirement set by BoG for RCBs, as at the end of March 2018.

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“We wish to remind all RCBs that the Banks and Specialised Deposit Taking Institutions Act, 2016 (Act 930) has stringent provisions on capitalisation requirements. Hence, we appeal to banks which have not yet complied to mobilise additional capital to forestall possible regulatory sanctions for non-compliance.”

He also entreated all boards and management of RCBs to put in place measures to strengthen credit management, so that its attendant negative effect on liquidity of the banks will be averted.

Moreover, this would enable the banks to improve on their profitability performance, he added.

The Chief Executive Officer of the bank, Christian Osei Bonsu, in an interview, said the bank’s business focus in 2018 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.

Mr. Osei Bonsu is of the view that the rural banking industry has a purpose for which they were established, and Amanano Rural Bank will not move away from its core objectives of ensuring that the communities in which it operates see the kind of development they desire to have.

Indicators 2017 GH₵ 2016 GH₵ Increase GH₵ Increase

(%)

Total Assets 45,687,682 35,969,256 9,718,426 27.02
Total Deposit 35,044, 548 28,739,540 6,305,008 21.94
Total Investment 18,114,124 15,933,033 2,181,091 13.69
Stated Capital 1,465,468 1,117,022 348,446 31.19
Loans & Advances 14,317,626 11,378,555 2,939,071 25.83
Cocoa Purchases 56,302,375 50,351,024 5,951,351 11.82
Net Profit Before Tax 1,196,207 460,805 735,402 159.59

 

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