Kintampo Rural Bank bags GH¢1.8m profit

Kintampo Rural Bank PLC
From right, Yaw Effah Baafi-Board Chairman; Boyd Donkor-Vice Board Chairman; and Martin Mensah-CEO

The Kintampo Rural Bank PLC at Kintampo in the Bono East Region has consolidated its growth with a sound performance across the key financial metrics during the 2021 year under review.

In the midst of external and domestic induced shocks, the bank weathered the storm to record GH¢1.83million as profit before tax. The figure represents 26.39 percent more than the previous year’s achievement of GH¢1.44million.

The bank grew its assets from GH¢55.09million to GH¢62.22million, representing 12.92 percent appreciation. On the other hand, total deposits surged by10.65 percent, increasing from GH¢39.45million in 2020 to GH¢43.65million in 2021. This was a demonstration of faith in the bank’s business by its customers.

As at 31st December 2021, loans and advances granted by the bank summed up to GH¢20.04million. The figure reflects significant increase of 32.74 percent as compared to the 2020 total of GH¢14.05million.

The outgoing Board Chairman of Kintampo Rural Bank, Yaw Effah Baafi, declared these developments during the 36th annual general meeting of shareholders held at Kintampo. The performance of the bank he said, was premised on consistent implementation of a diversified business model, commitment to growing revenue, and efficient risks management.

Shareholders’ funds he noted, went up by 12.43 percent; increasing from GH¢10.94million in 2020 to GH¢12.30million in 2021. Meanwhile, the bank closed the year with a stated capital of GH¢2.86million, which is 186 percent more than the regulatory threshold of GH¢1million.

He said the Directors recommended a total dividend of GH¢417,480.26 – which translates into GH¢0.020 dividend per each share. The recommendation awaits approval by the Bank of Ghana. He commended shareholders, management and staff for their support and interest in growth and development of the bank.

Commenting on corporate social responsibility, Mr. Baafi said the bank committed a total of GH¢29,960 into various activities within its operational area. The social investment covered healthcare, community development, education and agriculture.

Strategic partnerships

The bank, in its quest to enhance finance to agricultural-related activities, has entered into a partnership with the Feed the Future Ghana Mobilising Finance in Agriculture (MFA) activity. The US$19million project is a USAID-supported initiative that seeks to improve access to finance for farmers and agribusinesses in the country. The four projects among others help financial institutions to finance farmers and agribusinesses to purchase agricultural inputs (like seeds and fertiliser), boost production, invest in processing, or expand their businesses.

The MFA supports actors in the value chains of maize, soy, groundnut, cowpea, mango, cashew, shea and other high value export-ready crops. The Board Chairman therefore entreated customers of the bank and the public to take advantage of MFA to reap the project’s rich benefits.

He added that Kintampo Rural Bank, in its resolve to support SMEs, has maintained its partnership with the Venture Capital Trust Fund through the Association of Church Development Projects (ACDEP).

Future outlook

The bank has expanded its operational zone in the Savannah Region by opening a new agency at Damongo in the West Gonja Municipality. The move is in line with the bank’s strategic plan and commitment to provide convenient and competitive banking products and services to its clients and the general public.

“We hope this will be a game-changer in operations of the bank by helping the region’s unbanked population to be served, as well as help accelerate economic activities in the region while delivering value to you, our cherished shareholders,” the Board Chairman concluded.

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