Amanano Rural Bank bounces back strongly, walks the path of growth trajectory

• posts 199.2% growth in profit
• shareholders get 13.3% returns on investment

By Seth KRAMPAH, Nyinahin

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 2024 year under review.

The Bank has recorded an unprecedented profit before tax of approximately GH¢13.3 million in the 2024 year under review as against a little over GH¢ 4.4 million in the previous year representing an impressive growth of 199.2%.

By this, the Board of Directors has congratulated management and staff for the remarkable approximately GH¢8.8million profit growth which translates in absolute terms and have therefore been urged to work assiduously towards increasing the Bank’s profitability to increase shareholders’ investments.  Directors of the bank have also been commended for their strategic
direction and decisiveness in achieving this remarkable success.

Dividend Payment

The Board of Directors has proposed a total Dividend payment of GH¢453,230.24. This translates to a dividend-per-share of GH¢0.04p which gives a return on a dividend of 13.3% on the Bank’s current Share Price of GH¢ 0.30p which the regulator has given its exceptional approval to pay the proposed dividend to shareholders.

It is the hope of the Board of Directors that the Bank’s performance will continue to improve and move towards such a positive direction to enable the continuous payment of Dividend in the years ahead.

Stated Capital and Shareholders Funds

In the 2024 year under review, the Bank’s Stated Capital grew by 19.43% from GH¢1.98million in 2023 to approximately GH¢ 2.37million in 2024. Shareholders’ Funds also increased by 804.46% in 2024 compared to -2.4% in 2023. The astronomical increase resulted from unprecedented profit achieved and rigorous sales of ordinary shares.

The Bank in spite of this very impressive growth in share capital is strategizing to sign up new shareholders, and also have existing shareholders invest more into the Stated Capital of the Bank. This will enable the growth of the Bank to be accelerated and ensure that the Bank is able to expand its operations and enhance its profitability to the benefit of cherished shareholders.

Chairperson of the Board of Directors, Oheneyere  Mrs Augustina Asare Osei announced these and more at the bank’s 37th AGM of shareholders held last Friday at Nyinahin.

Operational Environment

According to her, the year 2024 presented significant macroeconomic challenges globally and locally, including inflationary pressures, currency depreciation and fluctuating interest rates. 2024 was also an election year, which crucially culminated in a change of government. These developments and their processes had varied implications for the operations of the Amanano Rural Bank in 2024.

In 2024, Ghana’s economy demonstrated robust growth, with real GDP expanding by 6.9% in the second quarter, a notable increase from 2.5% in the same period of 2023. This growth was primarily driven by the industrial sector, which grew by 9.3%, and supported by the services and agricultural sectors, growing at 5.8% and 5.4% respectively

In the 2024 year under review, Ghana’s rural and community banks (RCBs) played a pivotal role in bolstering the nation’s economy, particularly in advancing financial inclusion and providing credit to the Small and Medium-sized Enterprises (SMEs) sector. Amidst the macroeconomic challenges, these banks demonstrated resilience and innovation, significantly impacting local economies and underserved communities.

The banking sector remained resilient amid macroeconomic challenges. Total assets grew by 33.3% to GH¢323.2 billion as of June 2024, driven by robust growth in deposits and other funding sources. Profitability indicators showed improvement, with the sector remaining profitable and well-capitalized. The Capital Adequacy Ratio (CAR) with reliefs stood at 14.0% in December 2024, up from 13.9% in December 2023

In spite of the challenging macroeconomic environment coupled with the high inflationary rate that pertained during the reviewed year, the bank managed to pull a remarkable unprecedented operational performance in all key financial indicators as indicated in the table.

ITEMS	GH?’ Million   2024	GH?’ Million   2023	PERCENTAGE CHANGE
Total Assets	226,970,194	106,317,610	113.48%
Shareholders Fund	8,733,958	(1,239,813)	804.46%
Stated Capital	2,369,502	1,984,077	19.43%
Deposits	193,254,678	99,490,218	94.24%
Loans & Advances	51186217	34,473129	48.48%
Investment	110,799,000	44274000	150.3%
Cocoa Purchases	381,943,004.71	171,349,860	122.90%
Net Profit Before Tax	13,193,069	4,410,221	199.2
Net Profit After Tax	9,588,346	2700193	255.10%
Proposed Dividend	453,230	NIL

 

Corporate Social Responsibility

The Bank continues to provide support to various state institutions and stakeholders within its catchment areas. Some projects supported within the bank’s catchment areas during the year under review included that of the Traditional Councils, Ghana Education Service (GES), the Ghana Police Service, some government health facilities and support for Farmers’ Day Celebration.

For the year 2024, a total of GH¢124,971.00 was spent on CSR programmes for local communities compared with GH¢37,520 in 2023.

The Board Chairperson stressed that the bank is socially responsible and would continue to support projects and engage in environmentally friendly activities in the years ahead.

Commendation / Advice

The Managing Director of ARB Apex Babk, Alex Kwasi Awuah, praised the Board and Management for steering the bank from years of losses to sustain profitability. “Amanano Rural Bank’s journey from negative margins to robust growth is not just commendable, it’s inspirational. It proves that with discipline, vision, quality board and community trust, rural banks can thrive,” he stated.

He highlighted the bank’s significant profit growth, improved loan disbursement systems, and strengthened governance structures as key indicators of progress. Mr. Awuah also encouraged shareholders to continue supporting the bank’s expansion efforts, noting that Amanano Rural Bank’s current trajectory could soon earn it a spot among Ghana’s top-performing financial institutions.

Future Outlook

The Chief Executive Officer of the Bank, Daniel Bediako, in an interview with the Business & Financial Times said the Bank would continue to put in pragmatic measures to ensure positive growth and achievement of the Strategic Plan of the Bank.

He stressed that the Bank would intensify loan recovery, embark on intensive deposit mobilization, strengthen internal controls and maintain quality assets to increase profitability.

He has also emphasised that the Bank’s business focus in 2025 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.

Sounding very optimistic, he remarked that this resurgence signals a golden window for investors eager to align with a dynamic institution that blends community impact with financial performance. With visionary leadership and a loyal customer base, Amanano Rural Bank is poised for even greater expansion.

Oheneyere  Mrs Augustina Asare Osei Board Chairperson (standing) and flanked by the MD of ARB Apex Bank, Alex Kwasi Awuah and the Vice Chairman, Prof. Kwaku Dwomor Kessey as she addresses the shareholders at the meeting

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