Amanano Rural Bank posts 70% growth in investment

The Amanano Rural Bank Limited at Nyinahin, in the Atwima Mponua district of the Ashanti Region, has bagged approximately GH¢2.5million from investment alone -- growing from a little over GH¢3.5million 2012 to about GH¢6million in the 2013 year under review and representing a remarkable 70% growth.

The bank recorded a total deposit of about GH¢15million as against a little over GH¢11.4million in the previous year, representing 31% growth. This was due to the intensified mobilisation drive pursued by directors and management, coupled with ever-increasing public confidence in the bank’s operations.

However, in the2013 year under review the bank succumbed to some substantial losses in profit despite some marginal gains. Net profit of the bank decreased by 52 percent from GH¢711,871 recorded in 2012 to GH?338,904 in the 2013 year under review.

These and many others were made known by Nana Adjei Manu Berchie, Board Chairman of the bank during its 27th Annual General Meeting (AGM) with shareholders at Nyinhin.

A total of approximately GH¢7.9million worth of cocoa was purchased by the bank in the 2013 cocoa season in the year under review, as against GH¢10.4million in 2012, representing a 24 percent decrease.

Considering this development, the bank is seeking to improve its investment in the cocoa sector this year while also taking steps to deepen its engagement with licenced buying companies in order to realise this objective.

With cocoa producer price reviewed upward from GH¢3,392 to GH¢5,520 per tonne for the 2014/2015 cocoa season, it is hoped that this decision by the bank will contribute to enhancing growth of the cocoa sector.

The total assets of the bank grew from approximately GH¢16.3million in 2012 to GH¢20.7million in 2013, representing a percent increase of 27%.

Stated Capital of the bank also increased from about GH?856,000 in 2012 to GH?868,277 in 2013, indicating an increase of GH?12,628 and representing 1.48 percent growth. Bearing in mind the effect of this on growth of the bank, shareholders were encouraged to increase their shareholding so as to enable the bank realise the vision of strategic growth through branch expansion.

Microfinance activities of the bank during the year under review was encouraging, attracting a total lending portfolio of a little over GH¢1.77million disbursed to various groups in Nyinahin and its environs -- Bibiani, Mbrom, Tafo and Afful Nkwanta -- with a total membership of 2,513.

The directors of the bank have recommended a dividend payment of GH¢1.11 per share for the year ending 31st December 2013. The total dividend proposed is GH¢45,199 -- and this is in line with the approved rate of 15% of the bank’s realised net profit after tax to be paid as dividend to shareholders every year.

The General Manager of the Bank, Noble Christian Osei Bonsu, in an interview with Business & Financial Times said he and his management team will continue to pursue policies aimed at maximising more profit and giving exceptional customer satisfaction.

He emphasised that the bank will continue to pursue a massive share and deposit mobilisation, follow stringent cost-reduction policies, strengthen internal control measures, and develop the human capital to meet demands of functioning profitability in the competitive rural banking environment.

The Board Chairman in his concluding remarks acknowledged the Board’s commitment, along with management and staff, to the bank’s objectives -- recounting that their individual and collective efforts have culminated in significant improvements of the bank’s operational results for 2012.