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ECONOMICS

AC Bank makes 440% profit in 2017 Financial Year

The Afram Community Bank (AC Bank) in the Kwahu Afram Plains has recorded a profit before tax of 440% in the 2017 financial year with GHS 619,014.00 as compared to GHS 127,967.00 in 2016.

Date Created : 11/5/2018 6:16:12 AM : Story Author : William Dei-Gyau/Ghanadistricts.com

This was contained in the address of the Board Chairman Jeffery Kunadu-Addo to shareholders during the Bank’s 35th Annual General Meeting held last Saturday at the Tease Presbyterian Chapel in the Kwahu Afram Plains South.

According to the Chairman, the Bank is on course performing very well since 2016 after recording a negative net profit before tax of GHS 1,051,237.00 in 2015, but managed to turn around its fortunes in the subsequent years.

"After a rather challenging long years, I can proudly report that your Bank bounced back quiet significantly to record an end of year profit before tax of GHS 691,014.00 representing a massive growth from the GHC 127,967.00 recorded in 2016. It is thereby refreshing to state that the board of directors have fulfilled a promise made to fellow shareholders to set the bank on the path of profitability and creating value for shareholders equity investment" as captured in the address.

Mr. Jeffery Kunadu-Addo added that "it is pleasing to declare that even before the expiration of the December 2018 deadline given by the Bank of Ghana for all Rural Community Banks (RCBs) to meet the minimum capital requirement of 1,000,000.00, your bank has exceeded the said minimum capital requirement by GHS 336,047.00".

He stressed that "It is obvious we are on course harvesting what we all sowed with our brave decision taken during the 2014 AGM by accepting equity investment proposal from Mr. Jeffery Kunadu-Addo and partness which has contributed greatly to the banks current Capitalization status".

The Bank which has just set on the path of full recovery was not able to declare dividends to its shareholders as declared by the Board Chairman. "Your Bank has just set on the path of full recovery and we are yet to completely write-off accumulated operating losses from the normal operations of the Bank in fulfillment of section 35(1)d of the Banks and Specialised Deposit - Tracking Act, 2016 (act 930), it will be a violation of the regulatory provisions to declare dividend for the year. I regret to inform you that the Board of Directors does not recommend payment of dividends".

The Board Chairman disclosed that the branches of the Bank at Ekye Amanfrom and Maame Krobo has been able to receive some renovation work giving the Branch a first class facelift and a new banking premises to boost its operations respectively

He added "distinguished Shareholders, the Board of Directors is currently awaiting approval from Bank of Ghana to set up three new branches at Konongo in the Ashanti Region, Abetifi and Anyinam in the Eastern Region to link Agogo and Nkawkaw Branches to create what would be known as the southern sector of Afram Community Bank Limited".

This he said is expected to boost the confidence of all stakeholders and further communicate the newly found strength of the Bank and its readiness to establish itself as one of the most competitive brands in the Banking industry in Ghana.

Mr. Kunadu-Addo emphasized on the need for shareholders to top up their shares, especially those who are yet to meet the minimum holding of 500 shares, as in accordance with shareholders resolution passed at the 2016 AGM saying "it is our common believe that, additional capitalisation will strengthen the position of the Bank in meeting any further new minimum capital requirement to be prescribed by the Central Bank".

He then appealed to the governor of the Central Bank to review the regulations governing the Rural Community Banks to allow companies participate in buying shares from these rural Community Banks to boost its financial strength which the law today frown on.