https://www.myjoyonline.com/ddep-amenfiman-rural-bank-unable-to-pay-dividends-despite-the-increase-in-profit/-------https://www.myjoyonline.com/ddep-amenfiman-rural-bank-unable-to-pay-dividends-despite-the-increase-in-profit/

The Amenfiman Rural Bank is unable to pay dividends to its shareholders despite increasing profit margins by 10.41 % in 2022.

This is in compliance with the Bank of Ghana's directive in response to the current economic changes and the impact of the Domestic Debt Exchange Program with the IMF.

The Bank's profit margins increased to ¢557 million from ¢401 million in 2021.

Chairman of the Bank, Dr Toni Aubynn, says supporting the Central Bank's decision is necessary for reviving the economy.

“We cannot go against government policy to halt payment of dividends. If that will help the economy recover, why not?

"Our shareholders are disappointed but we are praying hard that next year we will be allowed to pay dividends. It is worrying, all of us are shareholders and were waiting to receive dividends”, he said.

Dr Toni Aubynn, says though the finances of shareholders will be affected, it is necessary in the efforts to salvage the Ghanaian economy.

In 2021, Amenfiman Rural Bank paid over GH¢2 million to shareholders as dividends, representing a 30% return on investment, with each share attracting 6 pesewas.

This was after the expiration of a directive by the Bank of Ghana for deposit-taking institutions to halt payment of dividends in two financial years due to the impact of the COVID-19 pandemic.

In January this year, the Central Bank wrote to banks to suspend the declaration and payment of dividends and other distributions to shareholders.

Banks hold more than 30 % of the ¢83 billion bonds that were swapped for new instruments.

An arrangement under the Domestic Debt Exchange Program means that the lenders have suffered significant losses.

Executive Director of the Association of Rural Banks, Comfort Owusu explains that measures are being taken to mitigate the negative impact of the debt exchange on the financial sector.

“The shareholders have invested and are not getting their dividends; you are expecting them to buy more shares. That is not possible. So most of them are not buying shares but still, some of the banks are trying to mobilize resources from other avenues”, she said.

The Amenfiman Rural Bank’s 2022 Annual Report indicates a profit of over ¢8 million, 10.4% higher than the amount recorded in 2021.

Total deposits grew to over ¢557 million from ¢401 million.

Total assets also went up by a variance of ¢159.3 million, a ¢38.6 per cent increase over the previous year.

Operating income and investments grew by 25.4% and 11.4 % respectively.

Cash and Bank balances increased to ¢173.9 million representing a significant growth of 232.5%.

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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.