- records GH¢36m profit before tax
- shareholders get 30% returns on current GH¢25 share price as dividend
By Seth KRAMPAH, Antoakrom
Amansie Rural Bank PLC, at Antoakrom in the Amansie West District of Ashanti Region, has recorded another impressive operational performance and growth in all indicators in the 2024 year under review.
The Bank posted an unprecedented pre-tax profit of approximately GH¢36 million in the 2024 period under review as against a little over GH¢11.69 million in the previous year, representing a remarkable growth of 207.98%.
The rise in profit has been 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.
By this, the Board of Directors has congratulated management and staff for the remarkable GH¢24.31million profit growth and have therefore been urged to work assiduously towards increasing the Bank’s profitability to increase shareholders’ investments.
Dividend Payment
The Board of Directors has proposed a total Dividend payment of GH¢3.37million. This translates to a dividend-per-share of GH¢0.075 and gives a return on a dividend of 30% on the Bank’s current Share Price of GH¢0.25 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
The Stated Capital of the Bank also saw an appreciable increase from GH¢4.49Million in 2023 to GH¢6.55Million in 2024. The increase of 45.81% was as a result of the sale of Ordinary Shares of 8,235,925 at GH¢0.25 per share, amounting to GH¢2.05Million.
The Bank in spite of this impressive growth in share capital is strategizing to sign on 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 its cherished shareholders.
The Chairman of the Board of Directors Ben Kwaakye Adeefe Esq. announced these and more at the Bank’s 40th Annual General Meeting of shareholders held last Friday in Antoakrom.
Operational Environment
According to him, the provisional data on Ghana’s economy released by the Ghana Statistical Service (GSS) showed that real GDP expanded by 5.7% in 2024, relative to 3.1% growth in 2023.
Non-oil GDP grew by 6.0% in 2024, compared to 3.5% in 2023. The strong growth outturn was primarily driven by industry and services sectors which grew by 7.1% and 5.9%, respectively.
Inflation remained elevated in 2024, and was sticky around 23%, significantly higher than expected. Data released by the Ghana Statistical Service indicated that inflation increased marginally to 23.8% in December 2024 compared to 23.2% in December 2023.
Inflation, during the year, was mainly driven by food prices which remained high on account of unfavourable climatic conditions and lagged exchange rate pass-through effects.
The Ghana Cedi came under intermittent pressures during the first three quarters of the year but regained some value in the last quarter.
The pressures emanated from increased demand for foreign exchange to support energy-related payments, uncertainties surrounding timelines on the conclusion of the external bond restructuring and COCOBOD financing arrangements, as well as election-related jitters.
At the end of the year, the currency had depreciated by 19.2% against the US dollar in 2024 as compared to 27.8% in 2023.
On the Money Market, Interest rates broadly trended downward at the short end on year-on-year basis. The 91-day and 182-day Treasury Bill rates decreased to 27.73% and 28.43%, respectively, in December 2024, from 29.39% and 31.70% in December 2023.
Operational Performance
In spite of the challenging macroeconomic environment coupled with the high inflationary rate that pertained during the reviewed year, the bank easily pulled another remarkable operational performance in all key financial indicators as indicated in the table.
Corporate Social Responsibilities
The Bank once again increased its spending by 151% on its Corporate Social Responsibility (CSR) in 2024 over 2023 figure. A total amount of GH¢1.05Million was spent in 2024 as compared to GH¢419,125.00 in 2023. A significant portion of the CSR went into the construction and completion of the AMANSIE Community Centre (Pavilion) at Antoakrom, thereby registering the Bank’s footprint on the land of its birth, as well as other increased support for the socio-economic development in its catchment areas.
The Board Chairman 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 Kumasi Manager of ARB Apex Bank, Leonard Maasang who delivered an address on behalf of the Managing Director, Alex Kwasi Awuah, congratulated the shareholders, Board, and Management of the Bank for the exceptional and impressive performance of the Bank.
According to him, the 2024 financial year marked a strong recovery and an impressive growth trajectory for Amansie Rural Bank. He stressed that in spite of the economic uncertainties and industry-wide challenges, the Bank demonstrated admirable resilience, innovation, and financial discipline.
Highlighting a few of the Bank’s impressive performance indicators, he mentioned that ARB Apex Bank has the belief that these are not just numbers but a reflection of prudent management, growing customer confidence, and a strong governance culture that is steadily driving the Bank towards long-term sustainability.
“When a rural bank doubles its pre-tax profit in one year, it is not by luck. It is the outcome of sound strategy, disciplined execution, and the collective dedication of the Board, Management, and Staff,” he stressed.
The MD of ARB Apex Bank said, the future of banking, especially for Rural and Community Banks, lays in digital inclusion and technological innovation.
According to him, Amansie Rural Bank must deepen its adoption of digital tools; including agency banking, mobile banking platforms, and the GhanaPay solutions, to enhance service delivery, expand outreach, and reduce operational costs.
He advised that digital transformation is not merely about technology; it is about building convenience and trust.
“A customer who can transact anytime, anywhere, and securely is a loyal customer and loyalty drives profitability. ARB Apex Bank continues to invest in shared digital infrastructure for RCBs” he said
He finally urged Amansie Rural Bank to leverage these platforms to reach more customers, especially the youth and informal sector workers who increasingly prefer mobile-based services.
Outlook
The Chief Executive Officer of the Bank, Frederick Kwakye Kyei tells Business & Financial Times, in an interview that the Bank would continue its good services and develop need-based products for its customers.
He has also affirmed that Amansie Rural Bank continues to stand as a pillar of financial resilience and community empowerment. According to him, the Bank’s performance over the past year reflects not only prudent management and operational efficiency, but also the unwavering trust customers and stakeholders place in them.
“We are poised to make significant strides in expanding our digital banking platforms, deepening financial inclusion, and supporting local enterprises, especially in underserved areas. These achievements are a testament to our commitment to innovation, transparency, and sustainable growth.”
Mr Kyei said he and his team are energized by the opportunities that lie before them. He stressed that their strategic focus remains anchored on enhancing customer experience, strengthening risk management framework, and investing in staff capacity development which he believes will enhance the bank’s profitability.
The post Amansie Rural Bank posts impressive operational performance appeared first on The Business & Financial Times.
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