Shareholders of Amenfiman Rural Bank are being offered 100% stock dividends following the upward adjustment of share prices for new investors.
By this move, the issued shares of GHs76 million have doubled, as part of the management’s efforts to redistribute the accrued wealth of the Bank.
Chief Executive Officer, Dr. Alexander Asmah, explains, “this is the time that the Bank has built a considerable amount of wealth and the Board has decided that the wealth has to be distributed to the existing holders.”
For about twelve years, the price of the Bank’s shares has remained at 20 pesewas despite the increase in profitability and value of the institution.
For 2024 alone, the Bank’s stated capital increased to over fifteen million cedis, representing a 55.88% increase. A similar percentage change of the indicator was recorded in the year before.
Per the assessment of management, the Bank’s value exceeds the amount being offered for new shareholders, hence the need for the increment of share prices by a hundred percent.
Despite the hike in the prices of the shares, the management of the Bank believes it is not a reflection of the value of the Bank.
“The professional valuation we did suggested a very high share pricing but the board directed that since we are a Rural Bank and there are a lot of rural investors, we shouldn’t put the price at a point that it becomes a disincentive to our investors,” he added.
At the Annual General Meeting of the Bank, shareholders and the board agreed to an automatic pricing of the cost of the shares based on the performance of the institution.
“Amenfiman Rural Bank share pricing will have an automatic formula; every year, the price will change based on the performance of the Bank. The risk situation, the economic situation and others will be the factors to determine the prices. There is a need for all to take advantage now because the prices may go up in the coming year,” he added.
Profit and Proposed Dividends
For the 2024 financial year, the Bank increased its profit margins, placing them above their competitors in the country. A net operating profit before tax increased by 271%, bringing the margins to GH¢89 million from GH¢24million achieved in 2023.
The Bank recorded a net profit after tax for the year 2024 of GH¢55,377,856. This is a significant improvement from a profit position of GH¢16,802,293 for the previous year.
The Bank’s return on equity increased to 48.28% from 23.02% which was recorded in the previous year. Other indicators were positively affected by the growth.
These areas include return on assets, return on capital employed and earnings per share.
Dr. Asmah attributes the gains to “strategic emphasis on meticulous cost management and a deliberate shift towards active portfolio management and diversification of investment and loan products.”
For this reason, cash dividends equivalent to 30% of profit after tax were proposed by the Board of Directors and have since been accepted by the shareholders.
An amount of GH¢16,613,356.80 is set aside as dividend to the shareholders, a figure equal to 42 percent returns on investment.
For every share which was purchased at 20 pesewas, shareholders will receive dividends of GH¢0.085 per share equivalent to GH¢6,504,629.00.
This is in addition to the share bonus issue of one additional share for every existing share held, also totaled GH¢10,108,727.81.
Deposit Mobilization and Future Outlook
The Bank’s deposits during the year under review surged to GH¢1.5 billion in 2024, from GH¢768 million in 2023, representing a 102% growth, the highest in the Rural and Community Banking industry in the year under review.
“This was achieved on the back of exceptional service delivery, the loyalty of our customers to do more with us and the dedication of our trained employees to reach out to the unbanked and the under-banked to capture them into the inclusion plan,” the Bank’s report indicated.
Additionally, the opening of new agencies and mobilization centers contributed to the growth.
The Board Chairman, Prof. Lucas Nana Wiredu Damoah in an address expressed gratitude to the staff for the achievement.
“I wish to use the occasion to congratulate our hardworking employees and to thank our esteemed customers for their loyalty. Today, our vision to become the bank of choice for the MSME is largely achieved and Amenfiman has become a household name, and a comprehensive one-stop shop for financial services, including insurance,” he said.
Under the leadership of Prof Damoah as Board Chairman, the Bank is pursuing regulatory authorization to expand its branches to Wassa Japa, Takoradi, and at thebRoman Ridge Area in Kumasi, to deepen outreach and accessibility.
Presently, the Bank operates 18 branches and 4 mobilization centres across the Western, Western North, Central, and Ashanti Regions.
Also, the Bank seeks to implement an additional 100 kW/year renewable energy capacity to reduce our carbon footprint and enhance our ESG profile.
In enhancing the use of technology in Banking, Prof. Damoah indicated, “We are actively exploring practical partnerships in the IT and Fintech space to boost our mobile and agency banking capabilities, thus extending banking services to the unbanked and contributing meaningfully to national financial inclusion efforts.”
Recognizing the role of MSMEs and agribusiness in the economy, the Bank is expanding support to these sectors-targeting interventions that enhance food security, job creation, and economic empowerment of women and the youth.
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