Atwima Mponua Rural Bank PLC has increased its profit margins by nearly one hundred percent in four years.
In 2017, the bank’s reported profit was over 549,000 cedis, up from over 1 million cedis last year.
Atwima Mponua Rural Bank’s growth has been recorded amid the COVID-19 pandemic and banking sector sanitation which has negatively affected businesses.
Businesses, including small and medium enterprises, which have been the backbone of the Bank, have been hit hard by the pandemic.
Chairman of the Board, Phyllis Constance Puttick speaking at the 38e The Annual General Meeting explained that careful steps must be taken to achieve this feat.
“It goes without saying that the prospects for attracting investment to any bank lie in its ability to operate at minimal cost while maximizing profits to ensure added value to shareholders’ funds,” she said. declared.
Despite the economic challenges, the Bank has experienced year-over-year growth of 35.8% in total assets since 2017.
At the end of the 2021 financial year, the bank’s total assets increased to 113 million cedis from 101 million in 2020.
Current account deposits recorded a positive variable of 104 million cedis against 92 million the previous year, cumulatively, they increased by 42% since 2017.
Since 2017, short-term investments have increased by 87%, which has had a positive effect on growth.
At the end of the 2021 financial year, the profit recorded after tax stood at 1,077,446 cedis, an improvement compared to that recorded in 2020 which amounted to 829,177 cedis.
With this robust financial improvement, it is recommended that twenty-five percent of profits that exceed two hundred thousand cedis be paid out as dividends.
Subject to the approval of the Bank of Ghana, each of the more than fourteen million shares attracts 0.014 cedis per share.
Social capital, regulatory compliance and corporate governance
The Atwima Mponua Rural Bank has exceeded the Bank of Ghana’s minimum capital requirement of one million cedis by half.
At the end of the 2021 financial year, the Bank’s stated capital in the year increased to 1,515,313 cedis from 1,508,713 million cedis the previous year.
This was achieved from the sale of 33,000 shares. The number of shares also increased to 14,336,840.
Board Chair Ms. Phyllis Constance Puttick said that despite the positive outlook, the bank is determined to improve its performance.
In response to the Bank of Ghana’s decision to ensure regulatory compliance and corporate governance, Atwima Mponua Bank is taking steps to comply with the standards.
This includes engaging a lawyer with years of experience in the industry as well as corporate governance to serve as the company secretary.
“With his help and advice, policy documents have been reviewed, some written from scratch and new ones introduced to guide all aspects of the Bank’s business. We were also able to significantly reduce most of the violations that accompanied the periodic on-site review by the regulator,” says Ms. Puttick.
Some board members have had their terms renewed as members promised to improve profitability.