Amansie West Rural Bank limited posts over 300% profit

Amansie West Rural Bank limited has posted 314.97 percent of profit before tax for the 2020 financial year.

The profit increased from 1,212,717 cedis in 2019 to 5,032,443 cedis at the end of 2020 which has been described as very difficult year for the business world.

At the 36th annual general meeting held at Antoakrom in the Manso area, General Manager of the Bank, Frederick Kyei Kwakye, explained that the surge in profit is attributed to improved revenues and curtailed operational expenses.

This was despite the effect of some locked-up funds with liquidated financial institutions which is impacting negatively on the operations of Banks and SDIs in 2020.

General Manager of the Amansie West Rural Bank, Frederick Kyei Kwakye

In the wake of these challenges, loan advances by the Bank grew from 54,908,199 cedis in 2019 to 71,645,893 cedis at the end of 2020 to support its customers during the height of the impact of the coronavirus pandemic.

The macro-economic environment in 2020 globally including that of Ghana experienced a turbulent period in 2020 with the advent of the COVID-19 pandemic.

“…we want to plead with you customers who have taken loans from the Bank to repay them on time, to enable the Bank grant new ones to qualified applicants.

We urge customers with dormant accounts to visit the Bank’s branches to reactive them with valid identification cards, since such monies would be sent to the Bank of Ghana in line with its directive”, the Board Chairman, Ben Kwaakye-Adeefe, Esq.

Financial Performance
The Bank’s stated capital also increased from 4, 131,958 cedis in 2019 to 4,161,893 cedis in 2020.

The marginal increase was as a result of sale of few ordinary shares of 119,740 at 0.25 cedis per share, amounting to 29,935 cedis

Even though the Bank has exceeded the minimum capital requirement of 1,000,000 cedis set by the Bank of Ghana.

“…the bank once again pleads with all shareholders to accept this very important and unpleasant directive as reserved financial resources would be utilized judiciously in order to earn profits for the growth and development of the bank to ensure the payment of dividends in future”, the chairman implored.

This is due to the instruction by the regulators that the Banks and Special Deposit Institutions not to declare and pay 2019 and 2020 dividend due to the negative impact of Covid-19 pandemic unless the bank meets all set criteria by the regulator.

Corporate Social Responsibility and Community Support
The bank spent a total amount of 84,553 cedis on its corporate social responsibility in 2020 as compared to 107,657 in 2019. 

The decline in performance was due to the restrictions during the COVID-19 pandemic and reeling impact of the corporate income tax of 25 percent that the RCBs are compelled to continually oblige to.

Sectors that benefited from the support are Education, health, agriculture, security services and other social activities.

The bank’s major clientele base is in the rural amansie communities whose major occupation is cocoa farming.

The bank therefore paid a total cocoa transfer of 86,778,039.76 in the year under review courtesy seven Licensed Buying Companies.

There was an increment of 2.1 percent when compared with the amount of 84,981,665.75 paid for cocoa transfers in 2019.

Change of Bank Name
Meanwhile, the bank has initiated processes to change the name to a public limited company (PLC) as a result of the passage of the Special Resolution at the 35th AGM to change the bank’s name from Amansie West Rural bank limited to Amansie Rural Bank limited.

The Board has since obtained approval from the Bank of Ghana to change its name as the first step, though the second phase of approval from the Registrar of Companies has not been obtained to complete the process of name change.

Board Chairman, Ben Kwakye-Adeefe, Esq. says as part of the name change, the bank is embarking on a holistic rebranding for a new image and identity.

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