Adansi Rural Bank posts impressive operational performance

• records GH¢ 3m profit before tax
• shareholders get 52% returns on current GH¢25 share price

By Seth KRAMPAH, Fomena

Adansi Rural Bank PLC at Fomena in the Adansi North District of Ashanti Region has held its 35th Annual General Meeting of shareholders and posted another impressive growth in all financial indicators for the 2024 year under review.

The Bank has recorded an unprecedented Profit before Tax of approximately GH¢24.3 million in the 2024 year under review as against a little over GH¢ 6.2 million representing an impressive growth of 291%.

By this, the Board of Directors has congratulated management and staff for the remarkable GH¢18.1million 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¢ 6,448,679. This translates to a dividend-per-share of GH¢ 0.13. This gives a return on a dividend of 52% 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

In the 2024 year under review, the Bank’s Stated Capital grew by 15.06% from GH¢5,039,787.00 in 2023 to GH¢ 5,798,688.00 in 2024. Shareholders’ Funds also increased by 102.24% in 2024 compared to 38.47% in 2023.

The Bank in spite of this satisfactory 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.

Chairman of the Board of Directors, Alexander Frimpong announced these and more at the bank’s 35th AGM of shareholders held last Saturday at Fomena in Ashanti.

Operational Environment

According to him, the year 2024 witnessed a sustained momentum in global economic growth. Global inflation had a continued downward trend throughout 2024, and most central banks moved closer to their targets. The Central Bank kept the Monetary Policy at 27% as at December 2024 from 30% at the beginning of the year.

On the domestic front, economic activity was stronger, with higher-than-projected growth in the first three quarters of 2024. At the beginning of the year, inflation rose from 23.2% in December 2023 to 25.8% in March 2024. Thereafter, it declined steadily to 20.4% in August, but rose to 23.8% in December 2024, primarily due to food price increases.

Operational Performance

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

ITEMS	GH?’ Million   2024	GH?’ Million   2023	PERCENTAGE CHANGE
Total Assets	416,732,806	232,984,792	78.8%
Shareholders Fund	32,092,864	15,868,922	102.24%
Stated Capital	5,798,688	5,039,787	15.06%
Deposits	371,365,495	211,950,012	75.21%
Loans & Advances	41,857,239	42,881,904	-2.39%
Investment	314,106,324	140,281,757	123.91%
Operating Income	60,342,820	36,659,338	64.60%
Net Profit Before Tax	24,304,030	6,201,539	291.90%
Net Profit After Tax	16,856,444	4,807,539	250.63%
Proposed Dividend	6,448,679	1,397,089	361.58%

 

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.

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 performance of the Bank.

Due to the Bank’s impressive 291.90% increase in profit, the Managing Director has described   the Bank as one of the most profitable rural and community banks in Ghana.

He reminded the board that the pilot phase of the Agency Banking implementation has been effectively concluded. He further encouraged rural and community banks to begin the deployment of third-party Point of Sale devices.

The Managing Director expressed his confidence that the project will serve as a significant revenue generator for rural and community banks as well as offering true convenience to their esteemed customers.

Future Outlook

The Chief Executive Officer of the Bank, Daniel Amponsah, in an interview with the Business & Financial Times, said Bank would continue its good services and develop need-based products for its customers.

The Bank recently introduced a new product named, “Adwuma Nkosuo” (literally means Business Growth) mainly for artisans in the Micro, Small, Medium-sized Enterprises. This he anticipates will help this class of customers to expand and grow their businesses.

 

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