Adansi Rural Bank bags GH¢2.73million profit…dividend up by 150%

The Adansi Rural Bank at Fomena in the Adansi North District of Ashanti Region has posted a remarkable operational performance in all financial indicators for the 2017 year under review.

The bank has recorded a pre-tax profit of approximately GH¢2.73million in the 2017 year under review, representing 15% growth – a little over the GH¢2million recorded in the previous year.

The Directors have recommended a dividend payment of GH¢0.02 per share amounting to GH¢697,435 for 2017, as against GH¢0.008 per share the previous year representing a remarkable increase of 150%

The bank’s total deposit increased from about GH¢38.7million in 2016 to a little over GH¢44.84million in 2017 – representing a satisfactory growth of 15.75%. This was as a result of the hardworking staff and the mobilisation drive pursued by staff and management. The bank’s loans and advances also went up by 5.55%, from approximately GH¢19.9million in 2016 to GH¢23.6million in 2017.

The Chairman of the Board of Directors, Alhaji Ahmed Kwame Boakye, announced these and more at the 28th Annual General Meeting of shareholders held last Saturday at Fomena.

According to him, government’s economic policy thrust in 2017 was to consolidate macro-economic stability and restore fiscal sustainability as an anchor for economic growth. In line with this objective, inflation witnessed downward trending month on month and progressively declined to 11.8% by December 2017 – down from 15.4% in 2016.

The worsening of the industry’s Non-Performing Loans ratio from 18.8% in 2016 to 21.2% in 2017 resulted from deterioration of the loan book year on year from GH¢6.2billion in 2016 to GH¢7.96billion. The high cost of production driven by high energy cost persisted, even though it is gratifying that steps have been taken to reduce cost of electricity in the current year.

Adansi Rural Bank was not spared this, as the NPL ratio worsened by 26.91% from GH¢2.39million in 2017 to Gh¢3.27million – representing 13.86% of the loan portfolio.

In spite of the challenging macroeconomic and political environment that pertained during the reviewed year, the bank managed to pull out yet another satisfactory operational performance in all financial indicators for 2017, as indicated in the line chart.

The bank continues to offer assistance to communities and institutions within its catchment areas in terms of community development projects. The major areas that benefitted include Education, Health, Sports and Recreation, Security, Financial Support (Adansi South & North, Bosomtwe, Atwima Kwanwoma, Asokore Mampong Municipal and Obuasi Municipal assemblies) toward Farmers’ Day celebrations to the tune of GH¢99,664 in total.

The bank continues to invest in innovative banking software and applications to make banking easier, and successfully deployed new banking software during the year under review.

In line with the objective of continuously investing in technology to deliver enhanced services, the bank has commenced installation of Automated Teller Machines (ATM) in all its branches.

The General Manager of the Bank, Mr. Akwasi Ossei Nkrumah, in an interview with Business & Financial Times said the bank’s business focus in 2018 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.

Mr. Nkrumah is of the view that the rural banking industry has a purpose for which they were established, and Adansi Rural Bank will not move away from its core objective of ensuring the communities in which it operates see the kind of development they desire.

“We have the expertise in managing small businesses and petty-trading, and that has been our primary focus as a rural bank. When development occurs at the grassroots level it becomes a clear indication that the country’s future economic outlook is brighter,” he stressed.

According to him, the bank will not relent its efforts to remain innovative in its products development agenda, which will be tailor-made so they will continue to be relevant particularly to the communities in which it operates.

Mr. Nkrumah also emphasized that making enough profit and paying good dividend to shareholders is not the only primary focus of the bank – it is also very committed to its corporate social responsibility activities.

Thebftonline.com

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