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The Board of Directors of the Anum Rural Bank (ARB) Limited has appealed to shareholders of the company to support the Staff, Management and Board of the Bank to achieve its 2018 target of Ghc one million profit by the end of the 2018 financial year.
These were contained in the address of the Board Chairman, Daniel Adu Apea during the 35th Annual General Meeting (AGM) held last Saturday at the Anum Presbyterian Chapel.
“We are targeting 1 million Ghana CEDI’s profit this 2018 financial year, and we are soliciting your support to reach there,” Adu Apea stated, adding that “in spite of the difficulties most businesses including Anum Rural Bank go through, there is still the increase in fuel prices, high utility tariffs among others, corporate tax was raised from 8% to 25% for 2016 and 2017 respectively, slowing down businesses. We were able to increase our profit before tax by 23.95% compared to last year. We again recorded an increase of 19.84% on our net interest income which has never happen in the history of our bank”.
He was quick to discredit some rumors that suggested that shareholders had lost confidence in the directors, saying “it’s never through shareholders has lost confidence in us, they are the owners of the bank, it is our responsibility as directors to render to them a true statement of account of the bank and together make decisions that will improve the operations of the bank, and that is exactly what we are doing now, they have the right to share their grievances and together we take a resolution for the bank to operate with”.
The bank which managed to maintain its presence in the exclusive and prestigious multi sectoral business group (Ghana Club 100) by placing 96th in the 2016 edition saw a reduction of its dividend offer to shareholders from 0.50Ghp per share to 0.45Ghp per share amounting to Ghc 276,107.00 and Ghc 276,234.00 in 2016 and 2017 respectively.
In an attempt to defend the reduction of dividend to shareholders, Daniel Adu Apea announced that “the board is unable to increase dividends per share this year.
Hr said neither is the Board able to equal dividends per share the previous year. Though the bank recorded a 23.95% growth in profit in 2017, Government increase in corporate tax payable from 8% to 25% has significantly reduced funds available for distribution.
That is why dividend is reduced to 0.45Ghp.
Meanwhile, the Managing Director of ARB Apex Bank, James Otieku, has recommended the bank for its 23.95% profit increase saying “it is a sign of growth”.
He also supported the Ghc 1million profit at the end of the 2018 financial year, urging all stakeholders to work towards that direction. “it is achievable,,” he stated.
Source: William Dei-Gyau