…records growth in all indicators
The Amanano Rural Bank PLC at Nyinahini in the Ashanti Region has held its 35th Annual General Meeting (AGM) of shareholders, and posted remarkable growth in all financial indicators for the 2022 year under review.
Operational Performance
The bank made a net profit before tax of GH₵842,127 in 2022, which saw an improvement over the previous year’s result – a net loss of GH₵1,941,434 in 2021. This improvement a result of the recoveries made in locked-up investment and quality loans.
The bank’s total assets saw a significant increase, from a little over GH₵59m in 2021 to a little above GH₵79m in 2022 – representing 33.83 percent growth.
Deposits of the bank grew from approximately GH₵60m to a little over GH₵80m, representing 32.77 percent growth for the 2022 financial year.
Total investments of the bank increased from about GH₵31m to approximately GH₵35m, representing 11.60% growth in the year 2022. Of the GH₵35m, Treasury bills constitute 66.07% amounting to over GH₵23m, which is risk-free investment
The bank’s stated capital increased from GH₵1.8m in 2021 to approximately GH₵1.9m in 2022, showing an increase of GH₵114,499 and representing 6.16% growth. Even though the bank exceeded the Bank of Ghana’s minimum capital requirement of GH₵1m for Rural and Community Banks, its capital has been impaired due to the losses from 2019 even though it recorded profit before tax of GH₵842,127 in 2022.
Loans and advances
The bank’s loan portfolio in 2022 stood at GH₵20m as against GH₵15m in 2021, representing a growth of 30.86% during the year under review. Customers and shareholders were entreated to repay loan facilities extended to them in good time, to enable the bank generate income and avoid provisions against such loans as a result of default.
Cocoa purchases
A total of GH₵54, 284,768 worth of cocoa was purchased in year 2022 as compared to GH₵34,286,753 in 2021, representing a percentage decrease of 58.33%
Chairperson-Board of Directors, Ms. Augustina Asare Osei, announced these and more at the bank’s 35th AGM of shareholders held recently at Nyinahini in Ashanti Region.
Economic environment
According to her, even though the bank performed well, the economic environment in which it operated during the fiscal year 2022 recorded some macroeconomic challenges.
The country’s economy expanded by 3.10% in 2022 – far higher than the 5.40% recorded in 2021, a period when the economy was hit by the Russia-Ukraine conflict.
The inflation rate increased from 12.60% as of December 2021 to 54.10% in December 2022, resulting in high operational cost. The Domestic Debt Exchange Programme did not affect the bank in 2022 because the board and management did not invest in bonds. The government of Ghana Treasury bills rate increased from 12.14% in 2021 to 29% in 2022. This had a positive impact on the bank’s investment income during the period under review.
Corporate Social Responsibility
The Board Chairperson noted that during the year 2022 under review, the bank in line with its corporate strategy spent a total amount of GH₵31,939 toward fulfilling its part of social obligations.
Future outlook
Ms. Augustina Asare Osei added that the Board is poised to focus more on new business culture and corporate strategy in building Amanano Rural Bank PLC to attract customers and investors.
“We will improve our performances without relenting on operating efficiency in order to deliver superior value to our cherished shareholders and customers.
“We promise to control cost and thereby maximise revenue and improve efficiency in the bank’s operations; customer satisfaction will continue to engage the Board’s attention,” she emphasised.
Chief Executive Officer of the bank, Christian Osei-Bonsu in an interview with Business & Financial Times said the bank will continue putting in pragmatic measures to ensure positive growth and achieving its Strategic Plan.
He stressed that the bank will intensify loan recovery, embark on intensive deposit mobilisation, strengthen internal controls and maintain quality assets to increase profitability.
He has also emphasised that the bank’s business focus in 2023 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.
Mr. Osei-Bonsu stressed the bank will continue developing its human capital to meet demands of functioning profitability, as well as achieving the objective of overcoming shocks from the unfriendly macroeconomy and rising cost of living, as well as its devastating effects.
