Adansi Rural Bank pays dividend on BoG’s exceptional approval
The Adansi Rural Bank has posted remarkable growth in all financial indicators for the year 2022.
The Board of Directors has consequently proposed a total Dividend payment of GH¢463,117.15, which represents 40 per cent of the profit available for distribution, after the Statutory Reserve requirements which translates to a dividend-per-share of GHS0.01.
This came to light at the 33rd annual general meeting of shareholders at Fomena in the Adansi North District of the Ashanti Region.
This Dividend proposal was made after seeking exceptional approval from the BoG. The Board of Directors hopes that the Bank’s performance will continue to improve to enable the payment of Dividends in the years ahead.
The bank recorded a profit before tax of a little over GH¢ 2.4million as against GH¢ 867,838 in 2021, representing an impressive growth of 179%, which translates to GH¢1,555,459 in absolute terms. This resulted from some high level of provision for Bad and Doubtful Debts due to the downgrading of some loans.
The bank is currently on the trajectory of growth and making a realistic profit after impairing the over-anticipated GH¢4million in investment income.
By this, existing shareholders and prospective ones have been urged to buy more shares to set the Bank’s growth pattern on the long-term objective of making a positive impact in the communities where they operate.
The bank’s Management Performance Review as of September 2023 has revealed a profit before tax of about GH¢1.6million. This is a significant performance, and the Board and Management are doing everything possible to ensure sustained operational efficiency to end the year well to give value to shareholders.
The total assets of the bank amounted to approximately GH¢164 million in December 2022, representing an increase of 30.98 per cent from about GH¢125million in 2021.
A healthy increase in deposits drove the Bank’s growth in total assets while the performance for year-to-date strongly suggests the Bank is very likely to witness a similar trend in 2023.
Chairman of the Board of Directors, Kofi Ampofo Agyapong, announced these at the bank’s meeting of shareholders.
Stated Capital & Shareholders’ Funds
The bank’s stated capital grew only by 1.68 per cent from about GH¢4.9million in 2021 to GH¢4.98 million. Shareholders’ Funds also increased by 19.36 per cent in 2022, compared to 24.30 per cent in 2021.
While the bank expects an expansion of its balance sheet through organic growth, the board chairman has stressed that it was important to sign on new shareholders, and also have existing shareholders invest more into the Stated Capital of the Bank.
That, according to him, would enable the growth of the Bank to be accelerated and ensure that the Bank was able to expand its operations and enhance its profitability to the benefit of its cherished shareholders.
Corporate Social Responsibility
Over the years, Adansi Rural Bank has been providing support to various state institutions and stakeholders within its operational territories. Some projects supported within the Bank’s catchment area during the year under review included that of the Traditional Councils, Ghana Education Service (GES) and the Ghana Police Service.
The Board Chairman stressed that the Bank is socially responsible and will not renege on supporting projects and engaging in environmentally friendly activities in the years ahead.
The Chief Executive Officer of the Bank, Daniel Amponsah, said the Bank would continue to put in pragmatic measures to ensure positive growth and achievement of the Strategic Plan of the Bank.
He stressed that the Bank would intensify loan recovery, embark on intensive deposit mobilisation, strengthen internal controls and maintain quality assets to increase profitability.
He has also emphasised that the Bank’s business focus in 2023 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.
Mr Amponsah stressed that the Bank would develop the human capital to meet the demands of functioning profitability as well as achieve the objective of overcoming the shocks of the unfriendly macro economy and rising cost of living, as well as its devastating effects.