Amenfiman Rural Bank posts 42% investment return - Board issues 100% bonus shares to shareholders
The Amenfiman Rural Bank PLC in the Wassa Amenfi East Municipality posted a profit before tax of 271 per cent, increasing from GH¢24 million in 2023 to GH¢89 million last year.
The bank's unprecedented growth was reflected across all indicators, leading to a net profit of GH¢55.3 million, a notable increase from GH¢16.8 million recorded the previous year.
The bank, therefore, proposed a cash dividend of GH¢0.085 per share, representing a 42 per cent return on shareholders’ investments, along with a bonus share of one additional share for every existing shareholder, both totalling over GH¢16.6 million.
This represents the first time in the bank’s 45-year history that such a substantial dividend has been paid to shareholders.
The Chairman of the Board of Directors, Professor Lucas Nana Wiredu Damoah, announced these at the bank’s 41st Annual General Meeting at Wassa-Akropong, Western Region.
Total assets
He said the increase in deposits, loans and revenue was reflected in the size of the bank’s balance sheet, which expanded by 103 per cent to surpass GH¢901 million at the end of last year.
Total assets increased from GH¢876 million in 2023 to GH¢1.7 billion, a 103 per cent rise, driven by loan disbursements to support local businesses, investments, and a 102 per cent growth in deposits.
Again, the Amanfiman Rural Bank’s stated capital increased from GH¢9.67 million to GH¢15 million, representing a 55.12 per cent increase, further strengthening its financial base, making it more resilient in pursuing strategic objectives.
Prof. Damoah stated that the bank’s return on equity of 48.28 per cent exceeded the industry average of 31.41 per cent.
“This figure reflects not only growth in shareholder funds and profit before tax but also highlights the bank’s exceptional ability to improve financial performance,” he added.
Operational, financial performance
The board chairman also revealed that deposits increased from GH¢768 million to GH¢1.55 billion, while the balance sheet expanded from GH¢876 million to GH¢1.77 billion.
Total credit delivery for 2024 reached GH¢880 million, with the loan portfolio growing from GH¢207.5 million to GH¢619 million, a nearly 200 per cent increase.
The bank, Prof. Damoah said, was committed to supporting Small and Medium Enterprises (SMEs), focusing on education, women and youth-led businesses.
Last year, the bank launched several initiatives aimed at improving access to credit in those sectors, including interest rate reductions on all loan products, he added.
Corporate Social Responsibility
He said the bank spent over GH₵1.3 million on Corporate Social Responsibility (CSR) in 2024, supporting health, education, sports, agriculture and other social causes.
Future Outlook
In an interview with journalists, the bank's Chief Executive Officer (CEO), Dr Alex Asmah, expressed optimism about the bank’s future.
Guided by its mission and strategic plan, he mentioned that the Amanfiman Rural Bank would seek regulatory approval to open new branches in Wassa Japa, Takoradi and the Ridge Area of Kumasi to improve accessibility and outreach.
Key future initiatives include installing an additional 100 kW of renewable energy capacity annually to reduce its carbon footprint and enhance its Environment, Sustainability, and Governance (ESG) profile.
Leadership is also exploring partnerships in the fintech sector to improve mobile and agency banking and to extend services to the unbanked, supporting national financial inclusion.
Dr Asmah stated that the bank would also support micro, small and medium enterprises and agribusinesses, focusing on food security, job creation and economic empowerment for women and the youth.
Commendation
The Managing Director of the ARB Apex Bank, Alex Awuah, praised the board, management and staff of the Amenfiman Rural Bank for their commitment to growth and development, recognising it as the leading rural bank in Ghana.
Some shareholders of the bank could not hide their joy over the dividends received.
One of them, Anthony Peter Amissah, praised the bank's management for their diligent efforts in ensuring shareholders received benefits from their investments.