https://www.myjoyonline.com/atwima-kwanwoma-rural-bank-pay-dividends-despite-slump-in-profits/-------https://www.myjoyonline.com/atwima-kwanwoma-rural-bank-pay-dividends-despite-slump-in-profits/

Shareholders of Atwima Kwanwoma Rural Bank will earn dividend of ten pesewas per share, one pesewa more than last year, despite   a 14 per cent slump in profits.

The bank’s profit after tax went down from 6, 942, 000 in 2016 to 5, 946 000 in 2017 on the back of 11 profit before tax drop over the same period.

But despite the slump, the bank is dispensing a whooping 1 million Ghana cedis as dividends to its  shareholders.

Officials blame the drop in profit on increase in Corporate Tax from 8 to 25 per cent and dwindling investment rates.

Board Chairman , Patrick Owusu tells Nhyira FM the bank has had  to pay dearly for the increased taxes.

" It is as a result of the increase in Corporate Tax which hitherto we were paying 8 % but it has increased to 25 per cent so obviously from 8% to 25 %,  it will hit your bottom line.

The other thing is, investment rate has gone down generally and Atwima Kwanwoma Rural Bank we have a lot of investments in other financial institutions and with a drop in investments, definitely, our profit before tax  also saw a drop."

Atwima Kwanwoma Rural Bank, a member of Ghana's Club 100 has already exceeded the Bank of Ghana's  minimum capital rate of 1 million Ghana cedis.

The bank's  current capital of 3.2 million Ghana cedis means it exceeded minimum  capital requirement  by over 200 per cent.

Mr. Owusu says  the bank is working tirelessly to strengthen liquidity to make it solvent against possible external shocks.

"Now we are not placing much emphasis on profit but on liquidity . We want to strengthen our liquidity base so that as a bank, we are very solvent so that we can meet the demands of our customers."

The period under review however saw the bank's deposits appreciate by 20 per cent from about 73 million Ghana cedis in 2015  to 87 million Ghana cedis in 2016.

Investment also grew by 25 per cent .

The bank spent a 74 thousand Ghana cedis on corporate social responsibility, most of it going into education, health and security, targeting the bank's catchment area.

Shareholders of Atwima Kwanwoma Rural Bank will earn dividend of ten pesewas per share, one pesewa more than last year, despite   a 14 per cent slump in profits.

The bank’s profit after tax went down from 6, 942, 000 in 2016 to 5, 946 000 in 2017 on the back of 11 profit before tax drop over the same period.

But despite the slump, the bank is dispensing a whooping 1 million Ghana cedis as dividends to its  shareholders.

Officials blame the drop in profit on increase in Corporate Tax from 8 to 25 per cent and dwindling investment rates.

Board Chairman , Patrick Owusu tells Nhyira FM the bank has had  to pay dearly for the increased taxes.

" It is as a result of the increase in Corporate Tax which hitherto we were paying 8 % but it has increased to 25 per cent so obviously from 8% to 25 %,  it will hit your bottom line.

The other thing is, investment rate has gone down generally and Atwima Kwanwoma Rural Bank we have a lot of investments in other financial institutions and with a drop in investments, definitely, our profit before tax  also saw a drop."

Atwima Kwanwoma Rural Bank, a member of Ghana's Club 100 has already exceeded the Bank of Ghana's  minimum capital rate of 1 million Ghana cedis.

The bank's  current capital of 3.2 million Ghana cedis means it exceeded minimum  capital requirement  by over 200 per cent.

Mr. Owusu says  the bank is working tirelessly to strengthen liquidity to make it solvent against possible external shocks.

"Now we are not placing much emphasis on profit but on liquidity . We want to strengthen our liquidity base so that as a bank, we are very solvent so that we can meet the demands of our customers."

The period under review however saw the bank's deposits appreciate by 20 per cent from about 73 million Ghana cedis in 2015  to 87 million Ghana cedis in 2016.

Investment also grew by 25 per cent .

The bank spent a 74 thousand Ghana cedis on corporate social responsibility, most of it going into education, health and security, targeting the bank's catchment area.

 

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.