Amenfiman Rural Bank shareholders pat directors on the back

• shareholders get 42% returns on investment
• board issues 100% bonus shares to existing shareholders

By Seth KRAMPAH & Elizabeth PUNSU, Wasa Akropong

Shareholders of Amenfiman Rural Bank PLC at Wassa Akropong in the Wassa Amenfi East Municipality of the Western Region has given a huge part at the back of the Board of Directors for the prudent management of their investments over the years.

The Directors have proposed a cash dividend payment of GH?0.085 per share to shareholders and issued a bonus of one additional share for every existing share—amounting to over GH?16.6 million for the 2024 financial year.

Presenting his report at the 41st Annual General Meeting (AGM) of shareholders, Chairman of the Board of Directors, Prof. Lucas Nana Wiredu Damoah, attributed the gains to the Bank’s financial stability during the year under review.

Profitability

According to the Board Chairman, the Bank’s net operating profit before tax increased by an impressive 271%, soaring from GH?24 million in 2023 to GH?89 million in 2024.

Additionally, return on equity rose to 48.28% in 2024, up from 23.02% the previous year. This positive growth was also reflected in other indicators such as the return on assets, return on capital employed, and earnings per share.

The Bank recorded a net profit after tax of GH?55.3 million for 2024 year under review, a significant improvement from GH?16.8 million in the previous year. The Bank’s profit margin experienced a strong and encouraging increase, driven by its strategic focus on cost management and a deliberate shift toward active portfolio management and diversification of investment and loan products.

The Bank’s return on equity of 48.28% significantly surpassed the industry average of 31.41% and its 2023 performance. This figure reflects not only growth in shareholder funds and profit before tax but also highlights the Bank’s exceptional ability to enhance financial performance.

Total Assets

The Bank’s growth in deposits, loans, and revenue was reflected in a balance sheet size exceeding GH?901 million at the end of 2024. Prof. Damoah noted that this strong asset growth was a result of effective management, strong leadership, and committed staff.

Total assets rose from GH?876 million in 2023 to GH?1.7 billion in 2024, a 103% increase, driven by loan disbursements, investments, and deposit mobilization. The Bank’s credit portfolio recorded significant growth, reflecting a focus on expanding credit facilities to support local businesses.

Stated Capital Review

In 2024, the Bank made substantial progress in strengthening its capital base to support its growth plan while complying with regulatory requirements. Stated capital rose from GH¢9.67 million to GH¢15 million, representing a 55.12% increase.

This capital growth further strengthened the Bank’s financial base, making it more resilient in pursuing strategic objectives. To ensure continued strength and reliability, Prof. Damoah stated that the Board and Management had adopted a proactive and strategic approach to capital management.

Operational and Financial Performance

Through prudent financial management, customer-centric innovation, and strong internal controls, the Bank recorded a 102% growth in deposits and a 103% increase in balance sheet size. Deposits grew from GH?768 million to GH?1.55 billion, while the balance sheet rose from GH?876 million to GH?1.77 billion.

This growth aligns with the Bank’s five-year strategic plan and enhances its ability to drive credit delivery and boost earnings. 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% increase.

The Board Chairman noted that the Bank is committed to supporting SMEs, with a special focus on education, women-led, and youth-led businesses. In 2024, the Bank rolled out several initiatives aimed at enhancing credit access in these sectors, including interest rate reductions on all loan products.

In June 2024, the Donkomi Promotion was launched to provide more credit access and higher loan values to clients. The Bank has also formed strategic partnerships to support investments in startups, women, and youth-led businesses, including building staff capacity to manage long-term loans.

Throughout the year, the Bank met prudential requirements for both primary and secondary reserves. It also enhanced loan delivery to susu and microfinance clients—programmes aimed at economic empowerment and poverty reduction.

Assets grew by GH?900.7 million, driven by increased loans and advances and investments in government securities. Net interest income rose by 50.54%, benefiting from higher loan interest rates. The Bank continued to serve its key client groups—smallholder farmers, traders, women entrepreneurs, and rural households.

Operating Income Review

Total income for 2024 rose from GH?133 million in 2023 to GH?274 million, a 105.35% increase representing GH?141 million in additional revenue.

Despite a volatile start to the year due to the Domestic Debt Exchange Programme (DDEP), the Bank successfully managed credit risks and increased income from loans and advances. Interest income contributed 92.98% of total revenue, with the rest coming from investments and service charges.

Corporate Social Responsibility

According to Prof. Damoah, 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 Business & Financial Times, Chief Executive Officer, Dr Alexander Asmah expressed optimism about the Bank’s future. Guided by its mission and strategic plan, the Bank intends to seek regulatory approval to open new branches in Wassa Japa, Takoradi, and the Ridge Area of Kumasi, to improve accessibility and outreach.

Regulatory Commendation

Managing Director of ARB Apex Bank, Alex Awuah, praised the Board, Management, and staff of Amenfiman Rural Bank for their dedication to growth and development, describing it as the leading rural bank in Ghana.

He also encouraged shareholders to increase their holdings, noting the attractive dividends as a strong incentive.

Some shareholders of the Bank could not hide their joy over the dividends received. In an interview with journalists, Anthony Peter Amissah commended the management of the Bank for their hard work in ensuring that shareholders reap benefits from their investments. He therefore encouraged others to purchase shares in the Bank to enjoy good returns.

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