Ahantaman Rural Bank grows stronger

Ahantaman Rural Bank Limited at Agona Nkwanta, in the Ahanta West District of the Western Region makes a sterling performance the year under review.

The bank’s total income for year 2017 was GHc26, 714,978 as compared to GHc21, 226,713 in 2016 representing 25.9%.

Deposits rose from GHc54, 445,543 in 2016 to GHc67, 228,617 in 2017, showing an increase of 23.5%.

Profit before tax in 2016 was GHc3, 511,326 as compared to GHc4,511,282 in 2017 representing 28.5% . Also, profit after tax in 2016 increased from GHc2,213,177 to GHc2,973,372 in 2017 showing a growth of 34.3%.

The Board Chairman of the Ahantaman Rural Bank Limited, Mr. Vincent Balychie Essien, announced these at the 30th Annual General Meeting of the Bank at Agona Nkwanta in the Western Region.

He mentioned that the bank posted a remarkable performance in spite of some challenges that befell the banking industry last year.

“During the period under review, the Tarkwa branch premises was renovated and expanded, plots of land were also acquired at Axim and Adum Banso for future development. We have also put up an ultra modern edifice for the Tanokrom branch of the bank; all these are to give the bank facelift as well as provide convenience to customers” he added.

According to him, a total amount of GHc106, 827 was spent on Corporate Social Responsibility for educational institutions, security services, various Metropolitan, Municipal and District Assemblies, Otumfuo Baidoo Bonsoe Challenge Cup as well as various traditional council towards Kundum festival.

Also, Mr. Essien said under the bank’s scholarship Scheme, a total of GHc91, 200 was disbursed to 102 beneficiaries at the Secondary and Tertiary levels.

“The bank, continues to maintain its strong position in the Efficiency Monitoring Unit (EMU) Rankings undertaken by ARB Apex Bank; Out of the 142 Rural Community Banks (RCBs) in the country, our bank was ranked 9th and the 1st in the Western Region for the last quarter ending December, 2017”, he said.

Mr. Kojo Mattah, Managing Director of ARB Apex Bank in an address read for him said, the banking environment has witnessed major changes in recent years; “Key to us as major players in the financial ecosystem of the country is the introduction of the new minimum capital requirement for RCBs.

He explained that as at the end of the first quarter of this year, 94 out of 141 RCBs have met the new BoG’s minimum capital requirement of GHc1 million.

“Although, this represent a significant of 67% of RCBs in the country, the data shows that some of the banks are facing serious challenges in shoring up the required regulatory minimum capital”. “I wish to commend the directors, share holders, and management of this bank for being one of the foremost banks to meet the requirement and till date, remains of the most capitalized RCBs in the country”

Mrs. Comfort Owusu, Executive Director of the Association of Rural Banks (ARB) urged the bank to come out with more innovative and developmental programmes to push forward the frontiers of your social responsibility.

“With the proliferation of the Microfinance Institutions and also the Universal Banks entering into the territories of areas perceived as “captive for RCBs” the competition has been keener and RCBs need to step their efforts in order to continue to be in business”, she said.

“Corporate Tax rate for Rural and Community bank was increased from 8% to 25 % in the 2016 National Budget; the enormous increase, is having a telling effect on the performance of all the RCBs and especially the ability to increase their paid-up capital to GHc 1 million by the end of 2018 as mandated by the Bank of Ghana” she added.

She pointed out that Ahantaman Rural Bank needs to be commended for the keen interest in capacity building of their directors, management and staff.