Atwima Kwanwoma Bank posts GH¢7.2m profit

Atwima Kwanwoma Rural Bank Limited in the Amansie West District of Ashanti Region has posted another remarkable growth in all the financial indicators in the 2015 year under review.

The Bank posted a net profit of approximately GH¢7.2million in the 2015 period under review as against a little over GH¢ 4.4million in the previous year, representing an impressive growth of 62.46%

The Bank recorded a total deposit of about GH¢72.3 million in 2015 as against a little over GH¢58.2 million in the previous year representing 24.15% growth. This puts the Bank among the first 5 rural banks in the country according to the Efficiency Monitoring Report, EMU by the Apex Bank as at last quarter of 2015.

The Chairman of the Board of Directors, Patrick Owusu announced these and more at the 33rd Annual General Meeting of shareholders held last Saturday at the Presbyterian Church at Pakyi No.2 near Kumasi.

According to him the economic indicators of the country for the year 2015 had no positive variance to that of the previous year. Real GDP declined to 3.9% from 4.2% in 2014 while inflation also shot to 17.7% as against 17% in 2014.

He mentioned the excessive borrowing of the government which crowded out banks and other industries. Banks’ non performing loans increased significantly due to general stagnation in business activities of small and medium enterprises.

He said the general banking industry moreover suffered reputational risk due to non ability of some Microfinance institutions to meet customers’ demands. These adverse developments of the economy he said resulted into reduced purchasing power of consumers, high tariffs and demand from labour to increase salary and conditions of service.

In spite of the above challenges mentioned the Bank delivered satisfactory financial performance without compromising its standard of service, risk management and its discipline approach to doing business as indicated in the table.

The Board of Directors considering the state of affairs of the Bank to be satisfactory has proposed an amount a dividend per share of GHS 0.0850 amounting to GHS 925,518.85 for the year ended 31st December, 2015. In addition, the Directors have recommended for a special resolution to declare bonus shares for members whose names appeared in the Register as at 30th September, 2015. Bonus shares proposed is 10 shares to 3bonus shares which will amount to GHS 1,633,269 with a corresponding 8% withholding tax of GHS 130,661.52.

The total proposed dividend and bonus shares will amount to GHS 2,689,448.85 which is 37% of the bank’s profit after tax.

The Bank still being sensitive to the needs of individuals and corporate bodies within its operating areas, quite a number of groups and corporate bodies were assisted to undertake social and community projects during the period under review, and a total amount of

GH¢43,735.00 was spent in this direction.

As it has been the practice, the bank this year shall admit fresh students who are to enter second cycle institutions unto the bank’s scholarship scheme.

Four (4) students of the pioneer class of Atwima Kwanwoma Presby Senior High School who distinguished themselves at the WASSCE exams have been awarded scholarships of GHS 2,000 per student per year to pursue tertiary education.

The Bank’s efforts in all aspects of banking have been recognised by a number of credible institutions and have been duly rewarded. Notable among these are the Charted Institute of Marketing Ghana, CIMG that awarded the Bank for the second time as the CIMG Rural Bank of the year 2015 at the recently held 27th CIMG Performance Awards ceremony held at the Banquet Hall of the State House in Accra.

For 33 years of existence, the Bank has remained committed to one of its core values of Community Development. Government Agencies, Traditional Councils, Non-Governmental Institutions and all stakeholders operating from the Bank’s catchment areas and beyond have been beneficiaries of its social intervention programs one way or the other.

The Bank touched and transformed the lives of many through its Scholarship scheme since its inception 25 years ago. These interventions have been noticed and we have been rewarded at the 2015 edition of the Ghana Club I00 Awards, after being adjudged the 32nd most performing bank among equals, the Bank was also ranked as the 2nd CSR Company in Ghana after Ecobank Ghana Limited in its special awards category.

The General Manager of the Bank Stephen Sarfo Kantanka told B&FT that Management would continue to seek ways of strengthening and developing the Banks’ operations to maintain the confidence that their numerous customers and shareholders have in the Bank. “We will also intensify loan recovery, deposit mobilization, internal controls and maintain quality assets to increase profitability”, he stressed.

He mentioned that investments would be diversified to ensure safety and to utilize returns on assets and shareholders’ funds. Mr Sarfo Kantanka said despite the competition in the banking industry with its numerous challenges, Atwima Kwanwoma Rural Bank will continue to support its customers within its catchment areas to improve upon their living conditions.

Mr. Alex Kwasi Awuah, Deputy Managing Director of the ARB Apex Bank Limited, applauded the bank for the impressive performance and asked that this was sustained.

He urged the rural and community banks to make sure that they strengthen their internal control and governance systems, for efficient operations and adequately resource their internal audit units to effectively perform.

The Board Chairman in his concluding remarks extended his sincere appreciation to management and staff of the bank for their relentless efforts in giving greater returns to Shareholders’ investment and protecting the enviable name of the bank. “We remain committed to making Atwima Kwanwoma Rural Bank competitive in the years ahead”, he said.