Vincent Blaychie Essien addressing the shareholders
Vincent Blaychie Essien, Chairman of the Board of Directors of the Ahantaman Rural Bank Limited, says the huge corporate taxes imposed on rural banks are adversely affecting their operations in the country.
He said per their mandate, rural banks are supposed to alleviate poverty and improve the livelihoods of the rural and peri-urban inhabitants.
Mr Essien consequently appealed to the government, Minister of Finance and the Ghana Revenue Authority (GRA) to consider reducing the 25 percent corporate tax to enable rural banks to stay in business and continue to support rural folks.
He made the appeal during the 29th Annual General Meeting (AGM) of the Ahantaman Rural Bank at Agona-Nkwanta in the Ahanta West District.
“I am also appealing to government to consider channeling the funds earmarked for projects such as the ‘Planting for food and jobs,’ one district-one factory, and one constituency- one million dollars funding through the rural banks” he said.
During the year under review, total deposits increased from GH¢41.7 million in 2015 to GH¢54.1 million, representing a growth of 29.7 percent.
Mr Essien further indicated that total assets of the bank grew from GH¢52.6 million in 2015 to GH¢68.9 million in 2016.
He explained that the significant improvement of 31.1 percent increase was mainly due to increases in short term investments, loans and advances, cash and bank balances and properties, as well as plants and equipment.
According to Mr. Essien, the bank had earmarked GH¢45 million as loans to its customers, this year, stressing that the bank was ready to support all traders, contractors, rubber, cocoa, rice and vegetables farmers, to meet their financial needs.
Mr Blaychie Essien disclosed that total income was GH¢18.9 million in 2016 as against GH¢14.8 million in 2015, representing an increase of 28.1 percent while operating expenses also increased from GH¢12.9 million in 2015 to GH¢16.3 million in 2016.
He said as of December 31, 2016, the total paid-up capital stood at GH¢1,630,846.00 compared to GH¢1,520,744.00 the previous year, which showed a marginal increase of 7.2 percent.
He maintained that the bank’s capital position remained strong with a capital adequacy ratio of 20.7 percent at the end of December 31, 2016.
Based on that strength, he said, the board had proposed a dividend of GH¢0.050 per share, representing 67 percent increase and a cash dividend of GH¢0.040 per share and a bonus share of GH¢0.010 per share.
From Emmanuel Opoku, Agona-Nkwanta