The Kintampo Rural Bank Limited in Brong Ahafo Region has consolidated its position as one of the leading rural and community banks (RCBs) in the country, by posting robust gains in all key performance indicators during the 2017 year under review.
By far the biggest among 21 RCBs in Brong Ahafo in terms of assets base and other key indexes, the bank had its total assets appreciate by 19.87% from GH¢27.455million in 2016 to GH¢32.912million in 2017. The bank funded assets’ growth largely with GH¢4.767million (27.138%) in new deposits.
It closed the year with GH¢21.905million total deposits as compared to GH¢17.138million in 2016. Shareholders’ fund, on the other hand, recorded a 17% satisfactory increase from GH¢6.890million to GH¢8.167million; the stated capital component stood at GH¢1.250million as against GH¢1.035million in 2016.
On the premise of strategic expansion of its liabilities during the period under review, the bank grew loans and advances by 12.95%. The disbursed quantum increased from GH¢9.678million to GH¢10.932million. The move did not affect the bank’s capital adequacy ratio as it maintained 38.68%, which was significantly higher than the 10% minimum regulatory requirement.
Against the backdrop of prudent financial management such as safe and high-earning investments, Kintampo Rural Bank generated a total operating income of GH¢6.570million in 2017. The figure represented 10% more than the previous year’s income of GH¢5.972million. Meanwhile, the bank incurred operating expenses of GH¢4.602million, representing 12.36% over the 2016 expenses of GH¢4.095million.
Addressing the 33rd annual general meeting of the bank at Kintampo, Mr. Yaw Effah-Baafi, Chairman of the Board of Directors, said the 2017 impressive growth of the bank translated into marginal profit gains. He revealed that profit before tax was GH¢1.862million as against GH¢1.752 in 2016, indicating a slight increase of 6.30%.
Informed by its performance, directors of the bank recommended 25% of the net profit as total dividend for the year – translating into a dividend per share of GH¢0.0264 and amounting to GH¢339,357.
The bank continued to be hooked on corporate social responsibility (CSR) as key to its operating model for giving back to society. To this end, it significantly increased its allocation to CSR from GH¢29,215 to GH¢47,175. The money was channeled into various critical social interventions for the betterment of the bank’s immediate communities.
Forecasting into the future, Mr. Effah-Baafi announced that the bank has approved a five-year strategic plan spanning 2018-2022. He said the bank plans to open branches at places like Sunyani and Kumasi in the near future. To be in pace with modern trends of e-banking, the bank is also expected to commission two ATMs within this year, he added.
Kintampo Rural Bank is optimistic of continuous growth on the basis of anticipated expansion for its local economy and increasing opportunities in the catchment area. “With the booming cashew and mango production, especially with the launch of the 10-year cashew development plan by government, it is hoped that there will be improved income flow into our catchment area and ultimately raise the standard of living among people in the area,” the Board Chairman said.
He acknowledged the role of the Board, management, staff and customers in the bank’s progress and urged all stakeholders to put their shoulders to the wheel to further lift the bank to a higher pedestal.