Asante Akyem Rural Bank post growth … holds 32nd AGM

Board Chairman, Dr. P.Y Amakye

The Asante Akyem Rural Bank Limited at Juansa in the Asante Akyem North Municipality of the Ashanti Region has posted satisfactory growth in all financial indicators for the 2018 year under review.

The bank posted a pre-tax profit of approximately GH¢1.31million in the period under review as against a little over GH¢ 1.12million in the previous year, representing a satisfactory growth of 17%.

The bank recorded a total deposit of approximately GH¢42.95million in 2018 as against a little over GH¢36.65 million in the previous year, representing 17% growth. Savings Accounts maintained its lead with 63% of total deposits, followed by Current Accounts with 17%, Time 11% and Susu 9% – which is a manifestation of customers’ confidence in the bank.

Chairman of the Board of Directors, Dr. Philip Yaw Amakye, announced these and more at the bank’s 32nd Annual General Meeting of shareholders held recently at its head office at Juansa.

According to him, the bank registered a very reasonable performance in all the performance indicators, despite the major economic challenges posed by heightened local competition as well as the many negative effects on its operations.

He mentioned that the macroeconomic environment experienced mixed reaction during the year under review. Inflation rate at the beginning of the year was 10.3%, dropped to 10.0% in June and ended the year at 9.4%.

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The cedi depreciated against the dollar by 5.28%, from GH¢4.36 in 2017 to GH¢4.59 for the year under review.

The rates for 91-day and 182-day Treasury bills averaged 13% by end of the 3rd quarter, and ended the year at 14.6%.

The GDP declined from 8.1% in 2017 to 6.3% for the year under review, with the service sector recording the highest with 2.9%.

Nevertheless, prudent decisions and commitment by the Board, Management and entire staff brought improvement in the bank’s operations as shown in the table below.

The Board recommended a dividend payment of GH¢200,813 for the year under review at GH¢ 0.0033 per share.

In its quest to give back to society, the bank continued offering assistance to communities and institutions within its operational territories in terms of community development projects. An amount of GH¢32,110   was spent in this direction. Areas that benefitted were education, churches, health, community development and sports.

The bank granted scholarships to 14 students in 2015/2016 to pursue various programmes, such as Nursing, Teaching, Business Administration and Medicine, within a period of 2 to 6 years. Most of the students completed within the year under review, except one who is left with two years to complete his PHD in Veterinary Medicine.

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The Board Chairman in his concluding remarks acknowledged the Board, Management and staff’s commitment to the bank’s achievements, recounting that their individual and collective efforts have culminated in the significant improvements of its operational results for 2018. He urged all to continue giving their best for continued and sustained growth of the bank.

Item 2018 M 2017 M Percentage Growth

(2018-2017)

Deposits 42.95 36.65 17
Investment 20.42 17.17  

19

Share Capital 1.43 1.23 16
Loan Advances 18.31 18.29  

0.2

Profit before tax 1.31 1.12 17
Networth 7.52 6.82 10
Total Assets 53.82 48.26  

11

 

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