Ahantaman Rural Bank makes remarkable profit
The Ahantaman Rural Bank Limited at Agona Nkwanta in the Ahanta West District posted a remarkable net profit of GH¢2,943,598 in 2015 as against GH¢220,035 in 2014, representing 1, 237.8 per cent.
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Consequently, the board of directors of the bank has recommended a dividend of GH¢0.030 per share, amounting to GH¢646,745, which represents 22 per cent of the recorded profit after tax.
Last year, it was unable to pay dividend to the shareholders due to the distressed position of the bank, and that resulted in an increase in its total capital from GH¢1.49 million in 2014 to GH¢1.52 million, representing 2.2 percentage increase.
In spite of the challenging economic experience in the country, the bank’s profit before tax was GH¢3,199,563 in 2015, compared to the GH¢363,905 recorded the previous year, which represented 779.2 per cent, while its total assets grew from GH¢45,299,664 in 2014 to GH¢52,626,249 in 2015, with a percentage increase of 16.2.
Annual general meeting
Mr Vincent Blaychie Essien, the Chairman of the Board of Directors, who disclosed this at the 28th annual general meeting of shareholders at Agona Nkwanta, indicated that the bank raised GH¢41,732,828 as total deposits in 2015 as against GH¢37,832,523 in 2014.
He also said the bank’s net advances in 2014 were GH¢20,882,401, which rose to GH¢21,214,378 in 2015, representing 1.6 per cent while investments increased from GH¢12,956,277 in 2014 to GH¢19, 044, 383 in 2015, which also represented 51. 2 per cent.
Mr Essien further indicated that the bank’s total operating cost stood at GH¢12,891,382 in the year under review compared to the GH¢10,929,622 made in 2014, while total income rose to GH¢14,824,077 in 2015 from GH¢11,089,873 the previous year.
“In spite of the challenging economic situation experienced in the country, our bank, through diligence, strategy and hard work, braced the storm to achieve significant results in all its areas of operation. The bank is committed to staying on course in paying shareholders their due,” he added.
Social responsibility
For the year under review, Mr Essien disclosed that the bank spent GH¢73,000 on corporate social responsibility as against GH¢61,155 in 2014, explaining that 106 students, made up of 44 at the second cycle level and 62 at the tertiary, were supported under its scholarship scheme during the year.
The Chief Executive Officer of the bank, Mr Benjamin Afful-Eshun, appealed to the shareholders to patronise all its new products, including a year-long shares promotion designed to encourage them and the general public to purchase more shares.
The Chairman of the Western Region Rural Banks Association (WERBA), Mr Tony Aubynn, noted that some rural banks had become very vibrant and were now operating as commercial banks.
He, therefore, appealed to the government to channel the District Assemblies Common Fund to them since currently, it was allowing other banks to manage it.