Amenfiman Rural Bank to up capital contributions in five years.

Wasa-Akropong, (W/R)� The Amenfiman Rural Bank Limited at Wassa Akropong in the Wassa Amenfi East District has rolled out plans to up its respective Capital contributions from the current GH 2.3 million to GH10 million over the next five years.

In the short term, they are working hard to increase their capital to GH5 million by 2019.

Dr. Toni Aubynn, Chairman of the Board of Directors of the Bank, disclosed this at the 34th Annual General Meeting (AGM) of the bank,

He noted that the bank will remain strategic and stay ahead by raising its capital levels before any potential directive for a statutory increase in capital.

Dr. Aubynn also encouraged existing shareholders to increase their share value before potential investors from other sources come in.

He said the year under review saw a total assets growth of GH158.7 million in 2016 to GH182.7 million in 2017, indicating a 15 per cent increase.

The bank’s credit support to Micro Small Medium Enterprises (MSMEs) and farmers in the rural communities received a boost and over GH12 million loans were granted to them in 2017.

A total of GH70 million was disbursed to help boost economic activities and development in some communities.

The Chairman of the Board of Directors said that they recorded a profit before tax of GH8,225,821 as against GH9,987,370.23, representing a decline of 17.64 per cent. Profit tax for the year was GH5, 138,875.

However, due to the an aggressive expansion programme embarked on for the growth and prosperity of businesses in the medium to long term coupled with high cost of businesses, profitability dipped during the year under review.

The current dividend of GH0.06 per share is still a 30 per cent return on investment, considering a share price of GH0.20 per share.

Dr Aubynn further said that mobilising customer deposits grew from GH128.8 million in 2016 to GH148.8 million, representing a growth of 15.5 per cent, in spite of the extremely high competition from investment companies.

The board he added was committed to devoting 9 per cent of annual profits after tax toward the establishment of the Amenfiman State University College. Scholarships have been awarded to some students in the District.

He said they have made the needed investments in their branch expansion project and have successfully operationalised them. They will focus on developing the market to attract more customers.

Dr Aubynn pledged the bank’s readiness to partner the District Assemblies to implement the various government programmes.

He appealed to the Local Government Ministry to channel portions of the District Assembly Common Fund to some rural banks since they are always ready to help the Assemblies.

Source: Ghana News Agency