Avenor Rural Bank records 219.99 per cent profit before tax

News & Reports

Akatsi (V/R), Aug. 20, GNA - The Avenor Rural Bank Plc in the Akatsi South Municipality of the Volta Region has made a profit before tax of GHC854,147 in 2022 as compared to GHC266,927 the previous year. 

This represents a 219.99 per cent growth in the bank’s profit before tax within the year under review. 

Mr Thomas Clarkson Adade, the Board Chairman, made this known at the bank’s 40th Annual General Meeting (AGM) held at Akatsi on Saturday. 

The significant growth could be largely attributed to an increase in loans and advances granted to Small and Medium Enterprises (SMEs) to boost business in their catchment area, he said.  

Mr Adade said the rise in profit was a result of corresponding growths in total income, gross advances, and total deposits, which also impacted positively on the bank’s assets for the period. 

Among other indicators, the banks’ total deposit as of December, last year, was GHC19,307,247, compared to GHC16,442,280 in 2021, which also represents an increment of 17.42 per cent. 

“This is as a result of various mobilisation mechanisms that were adopted by the bank,” he said. 

Despite the Bank of Ghana’s regulatory directives to all rural and community banks not to pay dividends this year due to the current economic challenges and the impact of the Domestic Debt Exchange Programme, the Board, however, sought approval based on their good performance, Mr Adade said. 

“We are happy to recommend a dividend of GHC0.0060 per share amounting to a total of GHC95,961 for the year ended 2022.” 

An audited financial report for 2022, which was also presented to shareholders during the meeting, showed a rise in total income from GHC3,202,770 in 2021 to GHC4,773,011 in 2022, representing 49.03 per cent. 

However, the bank also witnessed a 6.52 per cent negative investment growth from GHC10.003,217 in 2021 to GHC9,351,293 in 2022.  

Mr Adade explained that the decline was due to the volatility and uncertainties associated with government securities. 

“This necessitated the conversion of some investments into loans and advances to minimise the risk of loss of income and investments.” 

Mr Adade, however, stated that the year looked very promising where shareholders must invest more in the shares of the bank for good return on their investments. 

Several achievements and plans, including the need to construct a standard head office, donations as part of their corporate social responsibility, the election of directors, and others were discussed during the AGM. 

Gross advances, which were GHC5,582,197 in 2021, also rose by 75.64 per cent to end the year under review at GH¢9,804,526. 

Source: GNA