Nkoranman Rural Bank PLC, located at Seikwa in the Tain District of the Bono Region, reported robust growth across all performance indicators for the 2023 financial year.
The bank’s commitment to prudent financial management and strategic consolidation efforts paid off, particularly through the effective use of its extensive branch network to boost deposit mobilisation.
As a result, the bank recorded a remarkable 32.16 percent increase in deposits, surging from approximately GH¢13.04 million in 2022 to GH¢17.23 million in 2023. The agrarian landscape in which the bank operates played a crucial role in this growth, with the agriculture sector accounting for a significant portion of the deposits. During the review period, Nkoranman Rural Bank advanced a total of GH¢1.16 million to stakeholders in the agricultural sector.
The bank’s gross loans and advances witnessed an impressive growth of 33.42 percent, rising from GH¢6.68 million to GH¢8.92 million. This performance underpins the bank’s important role in supporting local agricultural initiatives while solidifying its financial position in the region.
Additionally, the bank made significant strides by investing GH¢6.31 million in short-term securities, which reflected a 22.42 percent increase from GH¢5.16 million in the previous year. Total assets also appreciated, growing from GH¢14.73 million to GH¢19.88 million, showing a growth of 34.90 percent.
During the 27th annual general meeting of shareholders held in Seikwa, Franklin Adjei Tannor, Chairman of the Board of Directors for Nkoranman Rural Bank, highlighted the bank’s resilience in navigating various operational challenges.
He pointed out that the bank’s adoption of innovative strategies played a pivotal role in enhancing its overall performance.
“This proactive approach resulted in a staggering 311.88 percent year-on-year increase in profit before tax, soaring from GH¢197,581 in 2022 to GH¢813,792 in 2023,” he said.
Detailed insights into the bank’s performance are available in the accompanying table.
In his remarks regarding dividend payments, the Board Chairman, announced that despite the bank’s impressive financial performance, it would not be distributing dividends from its 2023 profits to shareholders. This decision, he explained, was made in compliance with directives issued by the Bank of Ghana.
Besides its financial achievements, the bank demonstrated its commitment to corporate social responsibility by investing GH¢17,810 into various initiatives within its operational communities, focusing on key sectors such as education and health.
Looking to the future, Mr. Tannor emphasized the necessity for the bank to remain competitive in an increasingly sophisticated banking landscape. To that end, he outlined a strategic focus on digitalization as a primary driver of growth. Plans include enhancing agency banking services, aggressively mobilising deposits, and concentrating efforts on providing financial advances to stakeholders within the agricultural value chain, specifically targeting cashew, cocoa, and vegetable farmers.
KEY PERFORMANCE INDICATORS
| INDICATORS | 2023 (GH¢) | 2022 (GH¢) | %CHANGE | |
| Total Assets | 19,883,565 | 14,739,526.00 | 34.90% | |
| Gross Advances | 8,921,945 | 6,687,157.00 | 33.42% | |
| Investments | 6,316,269 | 5,160,012.00 | 22.41% | |
| Deposits | 17,237,185 | 13,042,723.00 | 32.16% | |
| Profit Before Tax | 813,792.00 | 197,581.00 | 311.88% | |
| Paid Up Capital | 1,208,786 | 1,176,721.00 | 2.72% | |
