Dr. John Kofi Mensah, the Board Chairman of Enyan Denkyira Rural Bank (EDRB) PLC, has disclosed that the bank has recovered from a loss of GH₵29,998 in 2020 to post a pre-tax profit of GH₵ 564,492 in 2021 financial.
This was contained in the Board Chairman’s report delivered at its 39th Annual General Meeting (AGM) held at Ajumako Owane. Dr. John Kofi Mensah, who doubled as the Managing Director of the Agriculture Development Bank (ADB), attributed the 2020 loss to the outbreak of COVID-19 in the country that year which disrupted business activities.
“In the face of the difficulties, the Board, through its subcommittees and the various management committees worked together to ensure sound business practices throughout the period under review”.
Dr. John Kofi Mensah
Dr. Mensah noted that as a result, the bank’s operating income of GH₵3.778 million in 2020 increased to GH₵4.885 million in 2021, showing a rise of 29.32 percent.
Similarly, the Board Chairman stated that the bank also recorded an increase of 12 percent in its 2020 total deposits of GH₵ 18,378,508 to a record of GH₵ 20,576,062 last year. He added that the loan portfolio of GH₵10,925,333 in 2020 increased to GH₵12,866,549 in 2021, representing 17.8 percent growth.
Making reference to the pre-tax profit of GH₵ 564,492 last year compared to the loss of GH₵29,998 in 2020, Dr. Mensah said the two figures showed a relative growth of 1,982 percent.
The board chairman, without giving the 2020 figure, said total assets grew by 20.4 percent in 2021 to GH₵ 179.8 billion.
“These indicators show how resilient the bank (EDRB) is and the good fortunes and opportunities that await us in 2022 and beyond.”
Dr. John Kofi Mensah
A dividend of GH₵ 0.01 per share was subsequently announced but the board chairman indicated that it is subject to the approval of the Bank of Ghana because of the Central Bank’s directive in 2020 suspending the declaration and payment of dividends due to the impact of COVID-19.
Shareholders not Happy About Suspension of Payment of Dividend
The announcement caused some of the shareholders to express anger and worry. One of the shareholders, Mr. Arhinful Essel, suggested and was ominously supported by the rest that the whole idea of shareholding must be reconsidered.
According to Mr. Arhinful Essel, the value of money used to buy shares at the inception of the bank 40 years ago had greatly fallen compared to the same amount invested differently in the money market, “so, dividend per share must be a significant amount.”
Mr. Benjamin Chemel, Head of Finance and administration of ARB Apex Bank PLC, commended EDRB for turning the tide in 2020 to make a profit in 2021. He encouraged the bank to sustain its performance.
Mr. Isaac Akhurst, the Central Regional Secretary of the Association of Rural and Community Banks, also praised the bank’s performance, particularly for “complying with the corporate governance guidelines put in place by the Bank of Ghana”.
The District Chief Executive (DCE) for Ajumako-Enyan-Essiam in the Central Region, Rev. Ransford Kwesi Nyarko, also commended the bank’s performance but went further to appeal to shareholders and customers to continue to support the bank to grow. “This is the only bank in our district, so we must help it to survive to support us and our businesses here.”
