Bonzali Rural Bank records impressive financial growth in 2023

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By Samuel SAM

Bonzali Rural Bank (BRB) PLC, located in the Kumbungu district of Northern Region, has recorded notable growth in its financial performance for 2023 due to successfully executing strategic initiatives.

The bank’s financial statement for 2023 reveals a profit after tax increase from GH₵1,098,135 in 2022 to GH₵3,176,943 in 2023 -a difference of GH₵2,078,808 representing a growth of 189.3%. The total assets grew from GH₵54,310,050 for 2022 to GH₵64,748,154 in 2023, reflecting an increase of GH₵10,438,104 or 19.22%.



Deposits grew by 9.85% from GH₵45,401,212 in 2022 to GH₵49,875,016 for 2023, with a difference of GH₵4,473,804.

Net loans and advances rose from GH₵15,290,026 for 2022 to GH₵19,681,601 in 2023, representing a 28.72% increase.

Total investments grew from GH₵18,053,449 to GH₵25,445,654,while shareholders’ funds increased from GH₵5,315,162 in 2022 to GH₵7,680,996 in 2023. Gross earnings saw a rise from GH₵13,728,603 in 2022 to GH₵18,091,841 in 2023, and profit before tax went from GH₵1,430,402 to GH₵4,099,847.

The bank’s stated capital closed at GH₵1,358,840 with the per-share value increasing from GH₵0.10 in 2022 to GH₵0.30 in 2023 – a 200% increase.

Speaking at the bank’s Annual General Meeting (AGM) held at its headquarters in Kumbungu, the Board of Directors chairman, Alhaji Abdul-Hanan Iddrisu Ab, highlighted the bank’s resilience amid challenges faced by the financial sector in 2023.

He said the bank’s liquidity position remained stable as it consistently met primary and secondary reserve ratios set by the Bank of Ghana.

As of December 2023, BRB had 1,177 active microfinance groups with a clientele base of 13,976 contributing to the transformation of women’s lives through tailored microfinance loans.

Alhaji Iddrisu attributed the growth in deposits to effective deposit mobilisation strategies, stating: “We were able to meet the cash withdrawal needs of our customers as well as our cherished customers’ loan needs”.

He also mentioned that the bank’s improved products and services helped enhance customer satisfaction.

The chairman also noted that BRB made donations to support health, education, culture and sports initiatives in the community. For 2024, the bank aims to maintain a strong presence with key performance indicators at its operational zone in the north.

Executive Director-Association of Rural Banks (ARB) Ghana, Mrs. Comfort Owusu, commended the bank’s Board and staff for their accountability to shareholders and prudent investments. She urged management to continue improving service quality to attract more customers and sustain growth.

According to Mrs. Owusu, in-service training for ARB and ARB Apex Bank has improved customer service at rural and community banks, helping them remain competitive. Chief Executive Officer Dr. Augustine Ngmentomo Beakana added that BRB plans to partner with ARB Apex Bank to deploy an agency banking model by 2024 that enhances financial inclusion.

Kumbun Naa Yiri II, Naa Alhaji Iddrisu Abu, gave assurance of support from traditional authorities for the bank’s growth and sustainability – urging residents to cultivate a savings culture for the protection of their investments and future stability.

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