Wamfie Rural Bank posts satisfactory growth
The Wamfie Rural Bank Limited at Wamfie in the Dormaa-East district of the Brong Ahafo Region posted positive growth in all performance indicators during the 2016 year under review.
In the wake of unhealthy competition, amid the country’s challenging macroeconomic situation, the bank managed to increase its profit before tax significantly - by 62.44% from GH¢191,005 in 2015 to GH¢508,594 during the period under review. The 2016 profit development was a vast improvement over the previous year’s assessment, when the bank recorded only a16.85% marginal growth.
Total deposits of the bank increased fairly to a little over GH¢10.86 million, rising from GH¢8million in 2015 by 25.74%. The Loans and Advances portfolio was given a push to GH¢6.4million, indicating an appreciation of 32.84% over the previous year’s figure of GH¢4.3million.
Mr. Solomon Oppong-Twumasi, Chairman of the Board of Directors, announced these developments during the 35th annual general meeting of shareholders held at Wamfie. He said the bank, sensing the challenging operational environment, maintained its clear sense of purpose, hard work and dedication to cushion it and achieve the reasonable gains. Details of the bank’s performance are captured in the table below.
As many rural banks are grappling to achieve the Bank of Ghana GH¢1million minimum capital requirement by December 2017, Wamfie Rural Bank also trailed as at the close of the 2016 financial year. It increased its shareholders’ fund from GH¢396,204 to GH¢684,950, representing an increase of 42.15%.
The bank has to raise at least GH¢315,050 before the due date to meet the BoG threshold. To this end, the bank’s directors proposed to transfer GH¢250,006 from its profit - which was supposed to have been declared as dividend - to shore-up its stated capital. The Board Chairman appealed to owners of the bank to increase their holdings to help it meet the target, adding: “We sincerely believe your pride and ego would be hurt to see your bank annexed to another in a marriage of convenience.”
In the spirit of benevolence, Mr. Oppong-Twumasi said the bank donated 5,000 exercise books worth GH¢12,300 to 873 schoolchildren in 48 schools of the Dormaa-East district as part of corporate social responsibility. The bank also voted about GH¢10,200 to help complete the Wamfie Police District Commander’s office building. The money was channeled into painting, laying floor tiles, and fixing the ceiling, he added.
He pledged that bank’s commitment to expanding returns on assets and shareholders’ funds and diversifying investments to reduce risks, saying: “In line with the current government’s promise to reduce taxes and the policy rate, the bank will position itself to capitalise on those policies.” He thanked all stakeholders of the bank for their support and contribution to its achievement.