Amansie West Rural Bank posts growth

Isaac Otchere-Antwi Esq., Board Chairman

The Amansie West Rural Bank Limited at Antoakrom in the Amensie West district of Ashanti Region posted a satisfactory operational performance for the 2017 year.

The bank has bagged a pre-tax profit of approximately GH¢1.88million in the 2017 year under review, representing 17.29 % growth at a little over the GH¢1.6million recorded the previous year.

The directors of the bank have recommended paying dividends for the year 2017 at GH¢0.0165 or GHp1.65 per share on 30,005,793 ordinary shares which qualified for dividends. This brings the total dividend payable to GH¢496,471. The dividend paid per share for the year 2016 was GHp1.17, which amounted to GH¢344,875.

The bank’s total deposits increased from about GH¢54.3million in 2016 to a little over GH¢63.3million in 2017, representing a satisfactory growth of 16.56%.  This was a result of the hardworking staff and mobilisation drive pursued by staff and management. The bank’s loans and advances also went up, by 42.05% from approximately GH¢20.8million in 2016 to around GH¢29.6million in 2017.

The Chairman of the Board of Directors, Isaac Otchere-Antwi Esq., announced these and more at the bank’s 33rd Annual General Meeting of shareholders held recently at Antoakrom in Ashanti.

According to him, the business environment during 2017 was very challenging, as depicted by the various macroeconomic indicators. The cost of doing business was high, which resulted in very minimal returns for businesses.

Government’s economic policy in 2017 was to ensure macroeconomic stability and to restore fiscal stability as the catalyst for economic growth.

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For this reason, inflation witnessed a downward trending monthly, from 15.4% in 2016 to 11.8% by December 2017. By March 2017, the Monetary Policy Committee of the Bank of Ghana had also reduced the prime rate from 26% in January 2017 to 23.5% through the adoption of a loose approach.

The Monetary Policy Committee ensured that the prime rate reduced further to around 20% by December 2017. This development resulted in relative stability for the cedi against the major currencies in the world. It also resulted in a decline of the yield on 91-day Treasury bills, from 24% in 2016 to 14.8% in 2017. Thus, interest rates were reduced – which adversely affected the bank’s profitability.

In spite of the challenging macroeconomic environment that pertained during the reviewed year, the bank managed to pull yet another satisfactory operational performance in all financial indicators for the year under review as shown in the table.

The bank paid total cocoa transfers of about GH¢101.7million in the year under review. This showed an increase of 206% over the amount of a little over GH¢33.2million purchased in the year 2016. This was the result of good business from the bank’s leading Cocoa Buying Company, Agroecom Ltd. (formerly Armajaro Ghana Ltd.), which produced 57.13% of the total transfers paid.

The bank continues to offer assistance to communities and institutions within its catchment areas in terms of community development projects. The major areas that benefitted include Education, Health, Sports and Recreation, Security among others, to the tune of GH¢88,167.77 in 2017 reviewed year, as compared to GH¢122,623 in 2016.

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The bank’s Stated Capital increased from approximately GH¢2.55million at the end of 2016 to a little over GH¢2.66million as at the end of December 2017. The increase of 4.53% resulted from the sale of 462,228 ordinary shares at GH¢0.25 or GHp25 per share, which amounted to GH¢115,557.00.

The board chairman has therefore encouraged shareholders to buy more shares to support and sustain the bank’s developmental efforts.

The bank’s General Manager, Mr. Mills Opoku Boateng, has said its business focus going into the future 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, and trusted relationships with clients of the bank.

Performance Indicator 2017




Percentage Change (%)
Deposits 63 325 357.00 54 332 219.00 16.56%
Loans/Advances 29 627 390.00 20 857 599.00 42.05%
Investment 31 761 816.00 29 661 816.00 7.08%
Total Assets 80 146 658.00 71 759 792.00 11.69%
Profit Before Tax 1 887 061.00 1 608 863.00 17.29%
Share Capital 2 667 525.00 2 551 968.00 4.53%
Shareholders’ Funds 8 936 573.00 7 468 612.00 19.66%


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