…posts 251% profit growth
The Nkrankwanta Area Rural Bank at Nkrankwanta in the Dormaa West District of Bono Region has posted satisfactory growth across the financial performance indicators during the 2021-year review.
The bank improved deposit mobilization during the year under review as it closed its books with a little over GH¢17.31 million as compared to the previous year’s achievement of GH¢14.12 million, representing 23 per cent growth.
Following the same trajectory, the gross loans and advances to individuals and businesses in various sectors increased significantly by 187 per cent. The bank ended the year with a total deposit of GH¢4.05 million as against GH¢1.41 million in 2020.
The Board Chairman of Nkrankwanta Area Rural Bank, Kwaku Agyeman-Manu, who disclosed this development said, “the bank shall continue to develop attractive products that meet ever changing demands of our customers to sustain and improve the current gains.”
The proportionate increase in deposits, and loans and advances reflected on the assets base of the bank as it grew from GH¢14.85 million to GH¢19.25 million, showing an appreciation of 30 per cent.
However, the bank reduced its short-term investments by a slimmest of margin from GH¢10.23 million in 2020 to GH¢10.22 million in 2021, indicating a reduction of 0.1 per cent. The Board Chairman explained that “the bank concentrated more on Loans and Advances since interest on short-term investments in the period under consideration reduced to the lowest rate of 12 per cent per annum.”
That notwithstanding, the bank posted an impressive growth in profit during the year under consideration. Pre-tax profit stood at GH¢541,056 as against a loss of GH¢357,382 in the previous year, representing 251 per cent growth.
Mr. Agyeman-Manu, MP for Dormaa Central and Minister for Health who was addressing the 12th annual general meeting of shareholders and other stakeholders held at Nkrankwanta said the feat chalked was commendable on the background of the bank’s GH¢3.32 million non-interest-bearing investment that was locked up with the Securities and Exchange Commission (SEC).
The bank’s stated capital registered a margin increase of 10 per cent from a little over GH¢1.03 million to GH¢1.13 million. On the other hand, shareholders’ fund soared significantly by 360 per cent as it changed from GH¢224,516 to GH¢1.03 million.
Commenting on dividend, he said, “the Board could not propose and declare any dividend to our deserving shareholders. This is based on the directives of the Bank of Ghana to all Banks and Specialized Deposit Taking Institutions in the country not to pay dividend without the prior approval from the Bank of Ghana. The Board is optimistic that dividends may be paid to our cherished shareholders in the coming years.”
The Board Chairman noted that despite the challenges, the bank remains optimistic about the prospects, saying “the bank will continue to deepen our relationships with our customers and offer them superior customer services through right technology and innovative products.”
“We shall maintain our focus on minimising and diversifying risk, as well as improving productivity and efficiency. The Bank will strive to meet all the regulatory requirements to ensure that it remains a strong institution in a strengthened industry,” he added.
The Chief Executive Officer of Nkrankwanta Area Rural Bank, Paul Duku, in an interview said plans were advanced to expand its operations by opening a new agency at Dormaa-Ahenkro and also relocate the agency at Adabokrom in the Western North Region to a more befitting location. “These are part of strategies we have adopted to spur the growth of the bank.”