Asokore Mampong Rural Bank records growth amid economic challenges

Asokore Mampong Rural Bank (AMRB) has recorded impressive operational performance for the year ending December 31 2023, achieving significant growth across key financial indicators.

Speaking at the Bank’s 3rd Annual General Meeting, the Board Chairman, Nana Boakye-Ansah Debrah I, attributed the success to strategic decision-making, enhanced operational efficiency, and strong customer loyalty.

According to the to him, last year’s performance was remarkable, with significant improvements in all major performance indicators. Total deposits grew by 41 percent, reaching GH? 28.03 million, up from GH? 19.88 million in December 2022.

Loans and advances more than doubled, recording a growth of 135 percent to GH? 10.24 million. Additionally, total assets increased by 44 percent, closing the year at GH? 30.75 million.

Profit Surge

The bank also recorded its third consecutive year of profit growth, with profit after tax surging by 77.27% to GH? 619,231, compared to GH? 349,310 in 2022.

“This performance did not come easy. It reflects the dedication of our Board, management, staff, and the unwavering trust of our customers and shareholders,” the Board Chairman noted.

Shareholders’ funds saw a 69 percent growth, climbing to GH? 1.86 million from GH? 1.10 million in 2022. Stated capital also improved, rising by 5 percent to GH? 2.90 million. The chairman noted that the achievements are a testament to their commitment to ensuring a robust financial foundation.

The Economic Environment

Speaking on the general economic environment he noted that 2023 was tense with economic challenges as the country grappled with unsustainable public debt levels, prompting the government to seek an International Monetary Fund (IMF) bailout. The subsequent Domestic Debt Exchange Programme (DDEP) required bondholders to trade existing bonds for new ones under revised terms, significantly disrupting the cash flows of individuals and institutions alike.

Growth in Banking Sector Deposits and Loans

Despite the economic turbulence, the chairman indicated that the banking sector demonstrated resilience. Total deposits grew by 34.6 percent, reaching GH? 214.5 billion by the end of December 2023, up from GH? 159.3 billion in December 2022. Loans and advances also saw a 13.8 percent increase, climbing to GH? 77 billion during the same period.

Investments and Community Support

AMRB’s investments grew significantly by 78%, reaching GH? 15.95 million, highlighting the bank’s strategic focus on sustainable financial growth. On the corporate social responsibility (CSR) front, the bank contributed GH? 12,876 to various initiatives, including support for local education, sports, and community empowerment programmes like Kumasi Academy SRC Water Project, Entrepreneurship for Woman Empowerment and Asokore Mampong Municipal – Farmers Day Celebration, among others.

Mid-Year Review

The Board Chairman noted that the mid-year review of performance for the year 2024 shows significant growth which when sustained would result in an impressive performance at the end of the year 2024. The total deposit of the Bank as of June 2024 had reached GH? 33.83 million and the Bank has already recorded a profit before tax of GH? 602,214.86.

The Board reaffirmed its dedication to adhering to the Bank of Ghana’s Corporate Governance Directive and other best practices. The bank’s leadership pledged to sustain its growth trajectory through innovative strategies and customer-centric services.

“We assure you that we will not rest on our oars but continue to work harder in the years ahead to achieve our corporate goals,” the Chairman assured clients, expressing optimism about the bank’s future prospects.

Future Outlook

The CEO of the Bank, Francis Nantwi tells    Business & Financial Times in an interview that as the Bank now enters into growth and improved 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.

Management would continue to seek ways of strengthening and developing the Banks’ operations to maintain the confidence that customers and shareholders have in the Bank.

Regulatory Advice

The Managing Director of ARB Apex Bank PLC, Alex Kwasi Awuah, whose speech was delivered by Leonard Maasang, the Ashanti Regional Manager of ARB Apex Bank commended the Board, management and staff of Asokore Mampong Rural Bank for the operational advancement in all critical financial performance indicators within this short period of existence.

He mentioned the implementation of mobile banking and agency banking to improve the banking experience of rural bank customers with the assistance of the World Bank and the Ministry of Finance. He disclosed that so far, more than 1500 banking agents have been recruited through this initiative.

He advised management to encourage customers of the bank to sign up to the digital platform which has been rollout by ARB Apex give customers the desired experience of convenience banking as well as financial inclusion.

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