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Business News of Monday, 26 October 2020

Source: Michael Oberteye, Contributor

Anum Rural Bank maintained strong financial footing despite coronavirus, banking sector clean-up – Board Chairman

The bank The bank

Board chairman of the Anum Rural Bank in the Eastern Region, Daniel Adu Appea says the bank has managed to sustain the shocks of the global pandemic and the financial sector clean-up to maintain its strong footing in the financial space during the year under review 2020, despite recording declines in its profits.

The bank’s 2019 Profit Before Tax decreased by a whopping 70.31% with GH¢317,328.00, a substantial decline compared to the 2018 figure of GH¢1,068,834.00.

Its interest income also declined by 11.67 per cent, comparing GH¢7,079,349.00 posted in 2018 to GH¢6,253,158.00 in 2019.

Net interest income, dropped from GH¢6,284,811.00 in 2018 to GH¢5,208,257.00 in 2019; representing a drop of 17.13 per cent, whiles its total operating income fell by 6.36 per cent from GH¢7,852,010 to GH¢7,352,759.

This came to light at the Bank’s 37th Annual General Meeting of shareholders held at Anum in the Asuogyaman District of the Eastern Region where the ordinary Meeting of the AGM was transacted.

The Bank’s total assets, however, grew from GH¢31.43 million in 2018 to GH¢36.19 million in 2019, appreciating by 15.14 per cent.

Its total deposits for 2019 stood at GH¢26,591,377, up by 18.19 per cent, as against the GH¢22,498.855 it held in the previous year.

The bank’s stated capital in the year under review rose to GH¢1,956,044 from GH¢1,917,253 in 2018, a growth of 2.02% and also recorded operating expenses of GH¢6,835,597 for the year 2019 compared to GH¢6,655,771, representing an increase of GH¢2.70%.

Due to the banking/financial sector cleanup and the resultant collapse of some banks and financial institutions, the bank’s investments of GH¢8,670,208.26 were locked up in three of these institutions – CDH Savings and Loans, Uni-Credit Savings and Loans and Uni-securities.

These had a negative impact on the bank’s profit in 2019.

The bank is however hopeful of receiving its total validated amounts following the validation of all of its accounts with the affected financial institutions by the Receiver as at 31st December 2019.

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