Bonzali Rural Bank performs admirably, despite challenges in the financial sector in 2020


… as value of deposits rises despite hit to profit

Despite the daunting operating environment for the financial sector in 2020, Bonzali Rural Bank managed to execute its strategies properly, and in the process, recorded an admirable financial performance for the full year.

The lender’s financial statement showed a profit before tax as at December 31, 2020 of GH¢40,833, compared to GH¢43,211 in 2019, representing a dip of 5.53 percent.

This was attributed to the impact of COVID-19 on the income-generating capacity of the bank, coupled with an increase in the non-performing loan ratio.

On a year-on-year basis, deposits, however, recorded a significant growth of 30.70 percent at the end of 2020 with GH¢35,236,208, compared to marginal growth of 3.14 percent in 2019 at GH¢26,959,957.

Gross advances dipped  by 7.80 percent YoY from GH¢13,623,719 to GH¢12,560,518 while total assets grew by 21.73 percent to  GH¢41,439,642 from GH¢34,042,518.

The bank’s share capital closed the year under review at GH1,172,194.00, compared with the 2019 figure of GH¢1,12,024, this was an increase of 5.41 percent while shareholder funds increased from GH¢3,332,668 to GH¢655,514, an uptick of 9.69 percent. Earnings-per-share (EPS) appreciated by 50 percent from GH¢0.02 percent to GH¢0.03.

Speaking at the 12th Annual General Meeting (AGM) of the bank, held at the forecourt of the bank in Kumbungu, the Board Chairman, Chief Mahama Andani, said the liquidity position of the bank remained stable during the period under review because the bank was able to consistently meet the primary and secondary reserve ratios required by the Bank of Ghana.

He said the growth in deposits was due to the effective deposit mobilisation strategies the bank implemented during the period stating, “We were able to meet the cash withdrawal needs of our customers as well as loan needs of our cherished customers.” 

Additionally, he noted, the bank was able to improve the quality of its products and services and that, in turn, enhanced its banking services to meet the demand of the customers.

Partnering for financial inclusion

Bonzali Rural bank is currently in collaboration, the board chair disclosed, is currently collaborating with a number of devlopment partners to improve access to financial and technical support to households and micro, small and medium enterprises for the provision of water, sanitation and hygiene in the Northern region.

The partners include the Government of Ghana(GoG),UNICEF and the Tamale Metropolitan Assembly as well as SNV Netherlands Development Organisation and Fidelity Bank.

The sum of €4,000,000 and $500,000 from SNV and UNICEF respectively have been earmarked for that purpose.

“It is also worth noting that the bank in collaboration with the GhiPPS is implementing the government’s social intervention programme, Livelihoods Empowerment Against Poverty(LEAP), which has enabled the bank to refinance thousands of households in five districts namely Karaga, Yendi, Saboba, Chereponi, and Kumbungu,” he said.

Chief Andani indicated that the bank has made donations to various individuals and institutions in the area of health, education, and sports as well as provide support for cultural and social activities within its operational areas.


The Bank is projected to maintain its dominance in microfinance operations in 2021 by  expanding its operations to some strategic places in Tamale in line with its business strategy he said.

He also disclosed that  the bank is partnering with the ARB Apex Bank to deploy an agency banking model by 2022 to further deepen its financial inclusions.

There are plans to issue 600,000 ordinary shares to both existing and potential shareholders for sustainability and growth of the Bank he said.

Kumbungu  Naa Yiri 11, Naa Alhaji Iddrisu Abu commended the Board and management of the bank for their tremendous commitment to enhancing the economic activities of the residents with the provision of some loans to facilitate their trading activities.

The District Chief Executive for Kumbungu, Abdul Salam Fataw Hamza, assured of government’s commitment to collaborate with and support the Bank achieve it goal of creating jobs and enhancing socio-economic businesses in the area.

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