Atwima Mponua Rural Bank on growth and profitability trajectory

Atwima Mponua Rural Bank Limited, a bank situated at Toase in the Atwima Nwabiagya district of the Ashanti Region is making a determined effort to put the bank back on a trajectory of growth and profitability.

The mid-year review of the bank’s performance for the year 2021 has shown positive variances in all performance indicators, which when sustained will see another sterling performance for the end of 2021.

The bank, after devising an operational strategy for growth, has recorded an unaudited profit of GH¢2million as at the end of July 2021.

By the middle of 2021, Deposit mobilization had hit almost GH¢100million, with an end of year projection at about GH¢120million. Shareholders’ Funds saw a significant leap to almost GH¢7million.

As the Board works toward improved loan recovery, reduced delinquencies and enhanced staff productivity, it is confident that this can only get better so these gains can be sustained throughout the rest of the year and beyond.

To cement and achieve the primary objective behind this growth initiative with operational efficiency, the Board has set up a recovery unit under the credit department to spearhead credit recoveries to help improve the bank’s loan portfolio quality.

Chairperson of the Board of Directors, Mrs. Constance Phillis Puttick, disclosed these and more at the bank’s 37th Annual General Shareholders’ Meeting held last Friday at the Church of Pentecost, Toase, in Ashanti Region.

According to her, the Bank of Ghana’s report on the Banking Sector indicates a rebound for many financial institutions after the initial slowdown throughout 2019 and the earlier part of 2020.

The industry recorded a strong growth in total assets funded mainly by deposits, which signalled renewed confidence in the banking sector.

The pick-up in deposits together with increased capital levels has given impetus to strong credit growth, with banks posting a stronger profit outturn.

The Bank of Ghana attributed this development to liquidity flows within the domestic economy from the COVID-19 fiscal stimulus, as well as payments to contractors, Specialized Deposit-Taking Institutions depositors and clients of SEC-licensed fund managers, which has provided additional funding to the banking sector to support asset growth.

Additionally, increased savings by individuals and firms against the pandemic-related slowdown in consumer and investment spending within some sectors also contributed to the strong deposit growth.

Despite the challenging macroeconomic environment coupled with an unprecedented pandemic that pertained during the reviewed year, the bank managed to pull yet another satisfactory operational performance in all financial indicators for 2020 – as indicated in the table below.

Dividend

In view of the BoG’s directive to all SDIs to desist from declaring dividends or distributing reserves to shareholders for the 2019 and 2020 financial years, the Board of Directors did not recommend members to approve the distribution of dividend for the 2020 financial year. The board has however assured shareholders that, at the appropriate time, their investment will be rewarded.

Corporate Social Responsibility

The bank acknowledges and deeply values its relationship with stakeholders within its operational territory and its network of branches. It commends Nananom, particularly, for their continuous support and commitment to the bank’s vision.

In appreciation of stakeholder obligations, Atwima Mponua Rural Bank in furtherance of its corporate social responsibility pledges continues to provide support for various causes.

During the reviewed year, the bank bought into Nana Toasehene’s vision of lighting-up parts of Toase with street-lights – and singlehandedly provided funds in support of this bold initiative to ensure there is improved security within the township. The Board has therefore commended Nana Toasehene in this regard.

Indicators	2019	2020	% Change
Profit Before Tax	645,158	829,177	28.5%
Profit After Tax	544,829	559,913	2.7%
Total Deposit	63,867,147	92,714,440	45%
Loans & Advances	15,022,827	18,806,443	25%
Short Term Investments	30,791,483	54,345,108	76%
Total Assets	76,502,730	101,029,516	32%
Shareholders’ Fund	2,860,222	4,856,021	70%
Stated Capital	1,352,068	1,508,726	11.5%