The Amenfiman Rural Bank PLC at Wassa Akropong in the Wassa Amenfi East municipality of the Western Region has recorded another remarkable operational performance in the 2022 year under review.
Profitability
The bank recorded a profit before tax of approximately GH¢10.7million in the 2022 reviewed year as against GH¢10.1million in the previous year, representing a marginal growth of 6%.
The marginal growth in profit before tax emanates from the background of high additional impairment provisions that had to be made within the year, to ensure the bank met prudential requirements.
However, management focused on improving the bank’s delivery of credit to Small, Micro and Medium enterprises within the bank’s operational territories as part of a drive to revive and ensure local businesses thrive amid the economy’s challenges.
Interest on Loans grew from GH¢54.18million to GH¢58.65million, which is an increase of 8.25% over the previous year’s performance. Interest on Investments also increased – by GH¢13million over the period, closing the year with a total income of GH¢47.77million.
Commissions and other income lines delivered a total income of GH¢11.6million.
Deposit
The bank’s deposits grew from GH¢401.8million to GH¢557million at close of the reviewed year. A growth of 38.7% is impressive and testament to the confidence customers and the public have in the bank. Management is intensifying the financial inclusion drive to make the bank’s services more accessible and convenient to customers.
The Board will continue working closely with management to review and offer the best products, services and delivery channels to the bank’s customers. Innovation, speed and convenience are key attributes of these discussions, as they will ensure greater performance in the years ahead.
Total Assets
The bank closed the year 2022 with total assets of GH¢637million compared to the GH¢477million achieved at close of 2021. Total Assets grew by 33.43% over the year, with 26% of the assets kept in portfolios that were cash and cash equivalent to meet depositor demands.
Earning assets constituted 86.21% of the asset portfolio with a total holding of GH¢549million from the previous year’s GH¢402million, which is a growth of 36.57% over the period. Liquid assets of the bank formed 70.48% of the portfolio, increasing from a position of 62.54% in the previous year.
The bank has maintained and grown its position as the biggest Rural Bank in Ghana, from a size of GH¢477million at the close of 2021 to GH¢637million at the close of 2022.
Stated Capital
The stated capital of the Bank stood at GH¢8.5million at close of the year 2022, which is above the regulatory requirement of GH¢1million. However, in view of ongoing economic challenges in the country, there is a need for further capital injections. Shareholders of the bank have been advised to increase their investments in it.
Compared with 2021, the stated capital has increased by GH¢1.8million – which is a growth of 26.31%. The bank is sufficiently capitalised for business in excess of GH¢7.5million. In addition to the stated capital, the bank has built up its reserves and currently holds in excess of GH¢45.5million to further support operations. In total, shareholder funds at the close of 2022 was GH¢55million – having increased by 17.21%.
With current initiatives by its Board and Management, the bank is positioned to build on these positions and increase shareholder funds.
Dividend
Despite impressive results from the bank’s performance during the period under review, and the fact that its reserves have increased over the past year, the Board is very much determined to declare and pay good dividends on shareholders’ investments this year.
Unfortunately, the Bank of Ghana – as part of its regulatory directives during the current economic changes and impact from the DDEP – has restrained banks and SDIs from declaring and paying dividends for the financial year 2022. This came as a great disappointment to shareholders, who were expecting dividend on their investments.
Shareholders have therefore been assured that the Board will put in place good measures to ensure the bank continues to operate profitably, and to guarantee good dividends will be paid out in the future.
Chairman-Board of Directors, Dr. Toni Aubynn, announced these and more at the 39th Annual General Meeting of shareholders held last Saturday at the Assembly Hall of Amenfiman Senior High School at Wassa Akropong.
Operational environment
According to him, the banking industry in Ghana remained resilient and well-positioned despite economic challenges encountered during the period under review.
Total assets of the banking sector grew by 22.9% to GH¢221billion at end-December 2022, compared to 20.4% growth recorded in December 2021. Investments contracted by 4.8% to GH¢79.2billion in December 2022 from a growth of 29% in 2021, as banks rebalanced their asset portfolios in favour of loans and other assets due to the Debt Exchange Programme. Net loans and advances recorded 29.2% growth in December 2022 to GH¢60.9billion, compared with 12.8% growth in the previous year.
Deposits remain the main source of funding for the banking sector, increasing by 30.4% to GH¢157.9billion in December 2022 compared with the growth of 16.6% recorded in December 2021. Borrowings however declined by 14.1% to GH¢18.9billion in December 2022, compared with 51.9% growth recorded.
In spite of the national and local macro-economic challenges, the bank as usual managed to pull another remarkable operational performance in almost all financial indicators for 2022.
Corporate Social Responsibility
The bank continues to take its corporate social responsibility (CSR) seriously, and endeavours to support worthy causes in multiple aspects of the communities in which it operates.
For the year 2022, a total of GH¢470,446 was spent on CSR programmes for local communities as well as other areas that benefitted from the bank’s CSR projects – including Health, Security and Agriculture.
Future Outlook
Chief Executive Officer Dr. Alex Asmah, in an interview with B&FT, said in 2022 the bank achieved sustainable growth – including developing its digital and sustainability capabilities through innovative programmes. According to him, plans are well-advanced in 2023 to improve the bank’s digital and technological backbone.
He has assured shareholders that they will continue working with Micro, Small, Medium Enterprises, as well as government and local institutions through new product innovation and service channels.
The CEO was happy to announce that the revenue outlook for 2023 is positive. He mentioned that the core business of lending is doing well; and coupled with the strategy to grow its non-funded income stream, the bank is introducing cutting-edge technology and innovation to grow income and profits this year and beyond so as to achieve its vision, and consolidate and sustain its leadership in the industry.
Dr. Toni Aubynn, Board Chairman, in discussion with Dr Alex Asmah, CEO, during the meeting
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