Despite the overwhelming challenges that bedevilled the economy in 2020, the Amantin and Kasei Community Bank at Amantin in the Bono East Region posted impressive growth in all performance indicators during the year under review.
The financial year was characterised by socioeconomic disruptions occasioned by the outbreak of COVID-19, but the bank weathered the storm to post a remarkable profit after tax growth of 267.84%. The figure stood at GH¢907,351 – which is a remarkable feat as compared to a loss of GH¢540,609 it posted 2019.
The bank also chalked up a milestone in the area of deposits mobilisation, as it ended the year with a little over GH¢44.53million, representing 51.49% increase over the 2019 figure of GH¢29.39million. Total assets on the other hand appreciated by 42.20%, changing from GH¢34.76million to GH¢49.44million. Details of the bank’s performance are captured in the table below.
The Board Chairman of Amantin and Kasei Community Bank, Dr. John Oduro Boateng, made these disclosures during the 15th and 16th annual general meeting of shareholders held at Amantin.
He said the bank really felt the impact of global economic downturn as a result of the COVID-19 pandemic, recounting the drop of Ghana’s GDP growth rate to 0.4% from 6.5% in 2019. The situation was largely caused by responsive measures like lockdowns, border-closure and supply chain disruptions.
That notwithstanding, he noted the bank was steadfast and pursued robust growth, hence the impressive performances in the indicators. He expressed optimism of improving its performance in the subsequent years, saying: “While the Banking sector still recovers from effects of the Banking sector reforms and COVID-19 pandemic, we remain optimistic about prospects for the Bank in the years ahead”.
The Board Chairman added that in line with the growing trend of technological advancement in the banking industry to offer platinum and innovative services to customers and consolidate growth, the bank will equally prioritise digitalisation to be in tune with changing dynamics within the banking space to remain relevant.
He announced a five-year strategic plan (2021-2025) has been rolled out to direct operations of the bank, indicating that the plan is anchored on commitment to prudent risk management and sticking with the stated direction. One key objective of the plan is to double deposits by 2025, with a corresponding growth in returns on shareholders’ equity by over 20%.
Corporate Social Responsibility
The bank committed GH¢18,993 – representing 10% of its profit after tax – into corporate social responsibility (CSR). According Dr. Boateng, the bank invested in projects like renovation of Amantin M/A JHS block and provision of PPE to Amantin, Ejura and Kasei health facilities. The bank also purchased a desktop computer for Kwabre East Municipal Education Service in the Ashanti Region, he added.
The General Manager-Amantin and Kasei Community Bank, Michael Wilberforce Osae, in an interview with B&FT appealed to government as a matter of urgency to reduce the 25% corporate tax to create more fiscal space for rural and community banks (RCBs).
The said tax regime, he lamented, has been suffocating RCBs since it was increased significantly from 8% to 25%; explaining that it would be prudent to take such a decision to help recovery of the economy from the shackles of COVID-19. RCBs need this tax relief more than ever to sustain operations as well as impact on society through CSR activities, he added.
Dr. John Oduro Boateng, Amantin & Kasei Community Bank Board Chairman
|Item||2019 (GH¢)||2020 (GH¢)||% Change|
|Profit Before Tax||(1,046,788)||1,058,913||201.16%|
|Profit After Tax||(540,609)||907,351||267.84%|