As per the 2021 financial performance review, the Capital Rural Bank at Abesim, near Sunyani in the Bono Region has made satisfactory strides toward growth.
This comes on a backdrop of years of operational challenges largely occasioned by externalities such as the repercussion of financial sector clean-up and the impact of the COVID-19 pandemic that caused the bank’s growth in the face of financial performance metrics.
The bank posted a significant 169 percent increase in profit before tax as it soared from a loss of GH¢987,765 in 2020 to GH¢681,991 in 2021. The feat was stemmed out of modification of its policies, accounting for impressive growth in income from a little over GH¢2.91million to over GH¢5.20million, reflecting 78.69 percent increase.
As the major driver of the bank’s income, the loans portfolios performed well, closing the 2021 financial year with a total of GH¢14.07million, showing an impressive 42.24 percent more over the previous year’s figure of GH¢9.89million.
In addition, the flexibility and tangible results from short-term investments during the year under review also cushioned the income level and growth of Capital Rural Bank. As at 31st December 2021, the total of investments made by the bank stood at GH¢6.17million as compared to a total of GH¢5.41million it invested in 2020.
On the other hand, total assets of the bank appreciated by 22.26 percent, as it increased from GH¢21.93million to GH¢26.81million. Total deposits equally went up from GH¢19.74million to GH¢21.58million, representing 13.51 percent change.
The Chairperson of Capital Rural Bank, Patricia Peprah-Agyemang, announced these developments during the 17th Annual General Meeting of shareholders held at Abesim. She alluded that the achievement of the bank was premised on the relative growth and development of the macroeconomic environment in 2021, adding that: “There is still a considerable distance to go to give the Ghanaian economy a clean bill of health.”
According to the Chairperson, after meeting all the liabilities, the bank’s residual value as at the end of 2021 amounted to GH¢1.98million. The figure shows that the shareholders’ fund grew by 20. 90 percent from the previous year’s figure of GH¢1.64million.
That notwithstanding, the Board of Directors did not propose a dividend for the financial year. “We pledge to work even harder than ever to ensure that we would be able to propose dividends at the next AGM. The progress that we have made over the few years indicates that declaration of dividends is more forthcoming than ever and so let’s keep the faith,” Mrs Peprah-Agyemang assured.
Future outlook
The bank’s 3-year strategic plan spanning from 2019-2021, she indicated, was successfully completed, and therefore, plans were advance to create a new strategic plan, stressing that the yet to be rolled out plan will take the bank to a higher level.
On his part, the Chief Executive Officer of the bank, Godfred Acheampong Larbi, said the bank is currently pursuing programmes that will bring expansion in its operations, and also focus on improving its existing products and services to meet the needs of customers, as well as make them attractive to prospective customers.
He added that the deposit mobilisation drive will continue to be supported to consolidate the impressive records achieved in the last two years.
