The Nzema Manle Rural Bank Limited, at Aiyinase in the Ellembelle district of the Western Region, has posted some remarkable performances after recording profit after tax of GH₵778,427, representing 154.95% growth for the 2020 year under review, as against GH₵305,327 recorded in 2019.
The Total Deposits of the Nzema Manle Rural Bank during the year under review, 2020, also stood at GH₵47,657,971 as compared to GH₵31,538,817 recorded in 2019. This translates to a 51% increase.
These and more were contained in the Board Chairman’s report delivered by Mr. Wisdom Quaiku, a board member, on behalf of the Board Chairman Mr. Emmanuel Yankson-Kwofie at the 38th Annual General Meeting (AGM) of shareholders, which was part of activities to climax the bank’s 40th anniversary celebration.
Operating Environment
According to him, and as part of the Bank of Ghana’s broader strategy to mitigate downside risks posed by the pandemic on economic activity, the Monetary Policy Committee (MPC) of the Bank of Ghana reduced the Monetary Policy Rate (MPR) by 150 basis points to 14.50 percent in March 2020 – which remained unchanged for the rest of the year 2020.
The MPC further announced a 2-percentage point reduction in the Cash Reserve Requirement (CRR) of deposit money banks and lowered the Capital Conservation Buffer by 150 basis points to 11.5 percent.
These measures were to bolster liquidity in the banking system and provide incentives for increased lending to critical sectors of the economy. In spite of the above policy initiatives adopted by the Bank of Ghana, annual growth in banks’ outstanding credit decreased in December 2020 relative to what was recorded in the corresponding period of 2019.
The nominal annual growth of outstanding credit slowed from 23.9% in December 2019 to 5.8% in December 2020. In line with these developments, nominal growth in credit to the private sector slowed from 18.0 percent in 2019 to 10.6 percent in December 2020.
In real terms, the annual growth of outstanding credit to the private sector moderated from 9.4 percent growth in December 2019 to 0.2 % in December 2020.
The COVID-19 pandemic outbreak affected the world market and definitely had an effect on operations of the bank, especially when mobile bankers went about their duties in fear of contracting the disease. In spite of the fear, the staff put in much effort to improve performance for the year under review.
Operational Performance
In spite of the challenging macroeconomic environment coupled with an unprecedented pandemic that pertained during the reviewed year, the bank managed to pull yet another impressive operational performance in all financial indicators for 2020, as indicated in the table below.
Performance Indicators for 2020 as against 2019
| Item | Year 2020
(GH¢) |
Year 2019
(GH¢) |
% change |
| Deposits
|
47,657,971 | 31,538,817 | 51.11 |
| Loans & Advances | 11,441,093 | 8,025,910 | 42.55 |
| Investments | 30,266,874 | 19,940,515 | 51.79 |
| Total Assets | 55,248,539 | 37,767,922 | 46.28 |
| Stated Capital | 1,261,954 | 1,247,787 | 1.14 |
| Profit Before Tax | 1,054,648 | 417,253 | 152.76 |
| Profit Before Tax | 778,427 | 305,327 | 154.95 |
Dividend
Breakout of the COVID-19 pandemic affected economic activities, such that steps had to be taken by the Bank of Ghana to protect Rural and Community Banks as well as the orthodox commercial banks. All banks were stopped from paying annual bonuses and dividends to their workers and shareholders respectively. In view of this development, the Board did not recommend payment of dividend.
Corporate Social Responsibilities
In the area of Corporate Social Responsibility, the bank spent GH₵58,857 on a number of activities: including support to Bakanta DC Primary School, Farmers’ Day celebrations, medical support and a donation to the National Cardiothoracic Centre.
Others also include donations to the Ellembelle District Education Directorate COVID-19 Trust Fund among others.
He noted that the bank had always been ranked within the first ten banks out of 140 RCBs in the country, according to the ARB Apex Bank Quarterly Performance Review Report.
The Chief Executive Officer of the Bank, Mr. Thomas Quayson, in an interview with Business & Financial Times said the bank’s business focus in 2021 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.
The bank’s business model, according to the General Manager, is still tailored for the Micro-, Small- and Medium Enterprises and will push for more market penetration as they develop new, better products and trusted relationships with clients of the bank.
He emphasised that the bank will continue to pursue a massive share and deposit mobilisation, follow stringent cost-reduction policies, strengthen internal control measures, and develop human capital to meet the demands of functioning profitably in the competitive rural banking environment.
Mr. Wisdom Quaiku, a director of the bank, addressing shareholders during the meeting
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