Asante Akyem Rural Bank posts 78% growth in profits

The Asante Akyem Rural Bank Limited at Juansa in the Asante Akyem North Municipality of the Ashanti Region has posted very impressive growth in almost all the financial indicators in the 2012 year under review.

The Bank posted a pre-tax profit of approximately GH¢1.1million in the period under review as against a little over GH¢621,000 in the previous year, representing an impressive growth of 77.62%.

The Bank recorded a total deposit of approximately GH¢15.5million in 2012 as against a little over GH¢11million in the previous year, representing about 39% growth. With this, savings accounts maintained their lead with the composition of 66%, followed by current 22% and fixed deposit 3% -- with Susu taking 9% of the total deposit. The growth represents public confidence in the bank and commitment of its cherished customers.

The Bank also met both primary and secondary reserve requirements of 13% and 30% respectively by the Bank of Ghana, with the Bank’s ordinary share capital currently standing at GH¢401,276 as at 31st December 2012 – representing a 5.33% rise from the previous year.

The Chairman of the Board of Directors, Mr. Francis Opuni,Sekyere, announced this at the Bank’s 26th Annual General Meeting of shareholders held last Saturday at its head office at Juansa.

He mentioned that the political climate during the election year had its own challenges for operations of the Bank.

Operational Costs rose significantly during the last quarter, especially in ICT infrastructural development as well as the increase in utility tariffs that brought a heavy burden to the bank.

Nevertheless, due to prudent management, the bank recorded significant improvement as shown in the table.

The Directors of the Bank have recommended a dividend payment of GH¢100,000 representing a 100% increase from the previous year of GH¢50,000 at GH¢0.0019 per share.

The Bank, in its quest to give back to society, continued to offer assistance to communities and institutions within its operational territories in terms of community development projects. An amount of GH¢26,800 was spent in this direction. Areas that benefitted were education, churches, health, community development and sports.

The desire to provide banking services closer to the people has been manifested by the bank with its opening of the Adumasa Mobilisation Centre.

The centre currently operates on Tuesdays and Fridays with the intention of extending the days after six (6) months assessment. The board chairman further appealed to residents in and around Adumasa to patronise the Bank’s services.

The Bank was admitted and awarded in 2011 at Ghana’s Club 100: It made it again in 2012 and placed 7th out of 21 RCBS admitted, as compared to 15th position in 2011 with 27 RCBS admitted. In Ashanti Region, the Bank placed 3rd in 2012 as compared to 7th in 2011.

The Board Chairman in his concluding remarks acknowledged the commitment of the Board, Management and staff to the Bank’s achievements, recounting that their individual and collective efforts have culminated in the significant improvements of the Bank’s operational results for 2012. He urged all to continue giving of their best for a continued and sustained growth of the Bank.