- Shareholders to enjoy dividend after two-year break due to directive from BoG
Ahantaman Rural Bank Plc, in the Western Region, continues to record healthy performance and has achieved significant growth over the past years.
The significant growth is in the key performance areas such as deposits, investments, paid-up capital and total assets.
Total Assets grew from GH¢139,186,429 in 2020 to GH¢166,019,417 in 2021, representing a remarkable growth of 19.3%.
Deposits rose from GH¢120,681,905 in 2020 to GH¢143,303,446 in 2021, showing an increase of 18.7%. Paid-up capital also increased from GH¢5,670,472 in 2020 to GH¢5,745,516 in 2021, showing an increase of 1.3%.
Investments, shot up by 9.3% from GH¢78,057,383 in 2020 to GH¢85,291,613 in 2021.
Eric Daning Esq., Board Chairman of Ahantaman Rural Bank PLC, at the 34th Annual General Meeting of the bank at Agona Nkwanta, in the Ahanta West Municipality of the Western Region explained that “the increase in total assets resulted in strong growth in investments in government securities”.
He said total deposits recorded moderate year-on-year growth, reflecting good liquidity flows; overall, the industry’s performance was good as banks remained liquid, profitable and well capitalised.
“The Bank of Ghana (BoG), per Notice No. BG/GOV/Sec/2020/03 dated April, 2020, directed the suspension of distribution of dividends for the 2019 and 2020 financial years. Thus, for two years running, the bank did not pay dividend to shareholders,” he pointed out.
In view of this, he said directors of the bank recommended the payment of dividend of GH¢0.08 per share, totaling GH¢2,714,78 in respect of the year ending 31st December 2021.
“It is exciting to note that the proposed dividend of GH¢0.08 per share is 23.53% return on the share price of GH¢0.34,” he added.
Lawyer Daning mentioned that the bank has partnered with Starlife to bring insurance to the doorstep of customers and the public. By this arrangement, the banking halls have become one-stop-shop for accessing all financial services. He therefore urged all shareholders to sign on for these products to secure their future against uncertainties of life.
On outlook into the future, he said: “the outbreak of COVID-19 pandemic led to a slowdown in economic activities worldwide, and that modest recovery achieved was in 2021”.
In spite of these challenges, he said Ahantaman continues to rank high as one of the best in the rural banking sector with strong performance indicators.
According to him, the board and management recognises that a lot still remains to be done to achieve the apex point of the bank’s objectives and goals.
“We will continue to apply the best strategies, good policies and prudent management of the bank’s resources to achieve sufficient and the expected growth in the years ahead,” he added.
Mr. Benjamin Afful-Eshun, Chief Executive Officer of Ahantaman Rural Bank Plc, also continued that the success of the bank can be attributed to three factors, namely: (i) a strong Board that provides excellent direction, (ii) a competent Management Team that is focused, and (iii) a well-motivated staff that is committed to the success of the institution.
“We were the first financial institution to publish our annual financial statements in the dailies this year; even in the midst of COVID-19, we were able to double our profit.
“We have policies and guidelines which ensure we do what is right for the bank as well as the customer,” he said.
Mrs. Comfort Owusu, Executive Director of the Association of Rural Banks – Ghana, declared that any bank that has had its AGM and has elected new officers should send their particulars to BoG for endorsement so they can start working.
She said ARB, in collaboration with GIZ, will be training staff of the rural banks on cyber security and other critical areas.
She commended the bank for its impressive performance and the shareholders for their show of maturity.
Mr. Alex Kwasi Awuah, Managing Director of ARB Apex Bank Plc, also congratulated Ahantaman for their performance and encouraged the staff to give off their best in the performance of their duties.
Mr. John Agyare, Municipal Chief Executive of Ahanta West, urged the Bank to come out with products that support the agricultural sector.
Performance Growth – 2015 to 2021
| INDICATOR | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
| Total Income | 15,950,254 | 21,226,713 | 26,714,976 | 28,235,565 | 27,016,727 | 30,560,461 | 40,824,982 |
| Total Operating Cost | 13,371,382 | 17,353,027 | 22,203,693 | 25,729,164 | 24,896,909 | 27,341,669 | 34,460,654 |
| Deposits | 41,732,828 | 54,145,626 | 67,228,617 | 79,527,360 | 89,962,409 | 120,681,905 | 143,303,446 |
| Investments | 19,044,383 | 22,597,322 | 23,012,003 | 25,963,485 | 45,593,013 | 78,057,383 | 85,291,613 |
| Advances (Net) | 21,214,378 | 28,730,102 | 41,528,582 | 43,401,616 | 36,116,020 | 37,762,544 | 49,685,290 |
| Shareholders’ Funds | 6,869,614 | 8,775,546 | 11,397,341 | 11,485,505 | 11,405,472 | 12,278,536 | 18,157,753 |
| Paid-up Capital | 1,520,744 | 1,630,846 | 2,163,929 | 5,481,697 | 5,627,678 | 5,670,472 | 5,745,516 |
| Net Impairment | 480,000 | 960,000 | 1,102,618 | 3,067,542 | 1,577,952 | 2,961,561 | 2,539,092 |
| Profit Before Tax | 3,199,563 | 3,873,686 | 4,511,282 | 2,506,401 | 2,119,817 | 3,218,791 | 6,364,328 |
| Total Assets | 52,626,249 | 68,971,966 | 87,801,696 | 95,299,699 | 105,215,064 | 139,186,429 | 166,019,417 |
| Capital Adequacy Ratio | 12.74% | 11.61% | 11.21% | 15.33% | 17.98% |
