Amanano Rural Bank closes in on strategic actions

• bags GH¢4.4million as profit
• records 424% growth in profit

Amanono Rural Bank PLC, at Nyinahin, in the Atwima Mponua District of the Ashanti Region has recorded impressive growth in all financial indicators in the 2023 year under review.

The Bank posted a pre-tax profit of approximately GH¢ 4.4 million in the 2023 period under review as against a little over GH¢ 842,127 in the previous year, representing a remarkable growth of 423.7%

The rise in profit is attributed to improved revenues generated from operations and prudent management of recurrent expenditures both on the part of the Board, Management and the entire Staff.

The Bank recorded a deposit of approximately GH¢ 99.5 million in the 2023 year under review as against a little over GH¢ 80.3million representing a growth of 19.23%.

This   impressive performance in deposit mobilisation is a testament of the confidence customers of the Bank and the public have gained in the Bank. Management is also intensifying the financial inclusion drive to make their services more accessible and convenient to customers.

With this, management and directors are hopeful that the initiatives that have been set in motion would help drive this key balance sheet item to a more impressive levels in the coming years.

The Board has further pledged to continue to work closely with Management to review and offer the best products, services and delivery channels to customers of the Bank with innovation, speed and convenience being key attributes of these discussions as they would ensure greater performance in the years ahead.

The Bank closed the reviewed year with a total asset of GH¢106.26million representing 25.68 % compared to a little over GH¢79 million achieved at the close of 2022. The Bank’s growth in Total Assets was driven by a healthy increase in Deposits and the performance for year-to-date strongly suggests the Bank is very likely to witness a similar or better trend in 2024.

The Board Chairperson of the Board of Directors, Augustina Asare Osei made these known at the Bank’s 36th Annual General Meeting of shareholders held recently at the Presbyterian Church auditorium at Nyinahin in Ashanti.

Amanano Rural Bank PLC is gradually closing in on the strategic actions spelt out in the Bank’s Strategic Agenda and is executing and delivering all indicators that had been spelt out in the strategy to represent a strong financial performance.

In the face of considerable economic turmoil and high operational costs within the country and the added burden of inflation and a depreciating currency, the Bank has been able to grow in terms of key financial performance indicators.

The Bank’s response to the difficult changes in the economy during the year was remarkable and the plan for the year was successfully executed with key objectives achieved despite all the challenges.

In spite of the unfavourable macroeconomic environment in which the bank operated during the reviewed year, the bank managed to pull a very impressive operational performance in almost all the financial indicators as shown in the table.

 

INDICATORS	2023 GH?	2022 GH?	INCREASE (%)
Total Asset	106,266,615	79,042,338.00	34.44%
Total Deposit	99,490,218	80,352,006.00	23.81%
Total Investment	56,175,133	35,080,517.00
Stated Capital	1,984,077	1,972,776.00	0.57%
Loans & Advances	34,473,129	20,585,218.00	67.52%
Cocoa Purchases	171,349,860	54,284,768.39	215.65
Net Profit Before Tax	2,700,193.00	797,345.00	238.64%

 

Dividend

The current Bank of Ghana directive (Notice no: BG/GOV/SEC/2020/03) dated 20 April, 2020 prohibits the Board of Directors to recommend the payment of dividend. However—considering the indicators and trends—the Board of Director has written to the Bank of Ghana to grant permission to Directors for the payment of dividend for the year.

Corporate Social Responsibilities

The Bank continues to offer assistance to communities and institutions within its catchment areas in terms of community development projects. In the year under review the bank spent an amount of GH¢13,450 on corporate social responsibility activities towards the stakeholders with special focus on Education, Health, Security among others.

Future Outlook

Amanano Rural Bank Plc is fast growing into a strong financial institution with continuous improvements with almost all the key performance indicators. The Bank has recorded impressive profit of over GHS 10.1 million as at the end October, 2024 as per the management report.

The Board has envisioned to pay dividend next year to shareholders with the approval from Bank of Ghana. The Board and Management have also intensified the sale of ordinary shares in the year 2024.

The CEO of the Bank, Daniel Bediako tells Business & Financial Times in an interview that as the Bank now enters into growth and substantial profit-making trajectory, they would leave no stone unturned to sustain the thrust.

According to him, the Bank will continue to see its strength in the area of managing the credit needs of the small and medium enterprises as well as continuing to improve upon the support the bank offers to this sector of the economy.

He emphasised that management would continue to seek ways of strengthening and developing the Banks’ operations to maintain the confidence that customers and shareholders are beginning to have in the Bank.

The Bank’s business model according to the CEO is still tailored for the Micro Small and Medium Enterprises and would push for more market penetration as they develop new and innovative products and trusted relationships with clients of the bank.

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