The Nkrankwanta Rural Bank in the Bono Region has recorded remarkable financial gains in 2024, with its total deposits surging from GHC27,867,185 in 2023 to GHC58,332,539, representing a 108 percent increase.
Addressing shareholders at the bank’s Annual General Meeting (AGM) in Nkrankwanta in the Dormaa West District, Board Chairman Mr. Kwaku Agyeman Manu revealed that the bank’s total assets also posted a 111 percent rise, climbing from GHC32,027,825 to GHC68,492,087 within the same period.
He added that the bank paid GHC250,000 in dividends, enabling shareholders to purchase additional shares.
Get the latest news, updates by joining our WhatsApp channel here: Join on WhatsApp.
Mr Manu described the payment of a second round of dividends as a sign of growth and financial stability. He noted that the bank’s short-term investments in treasury bills shot up by 220 percent, from GHC15,226,510 in 2023 to GHC48,728,091 in 2024.
Profit before tax increased by 14 percent, moving from GHC1,913,811 to GHC2,176,761.
The bank’s share capital recorded a modest rise of seven percent, moving from GHC1,290,193 in 2023 to GHC1,378,107 in 2024, while its net worth expanded by 50 percent, from GHC3,165,229 to GHC4,739,135.
He disclosed that the bank made a provision of GHC733,333 for bad and doubtful debts, assuring shareholders that management would strengthen credit risk controls and intensify recovery efforts to safeguard the loan portfolio.
Mr Manu expressed appreciation to customers and shareholders for their loyalty and said the bank would continue to adopt prudent strategies to boost deposits. He highlighted the need to grow share capital to maintain a strong Capital Adequacy Ratio (CAR).
According to him, the bank closed the year with a CAR of 22 percent well above the statutory requirement of 10 percent, demonstrating resilience and stability. He encouraged shareholders to buy more shares to support continued expansion.
He further explained that the dividend declaration was made despite stringent Bank of Ghana requirements and ongoing challenges stemming from locked-up investments at many Rural and Community Banks, which continue to affect growth and profitability.
Despite these constraints, Mr Manu said the Nkrankwanta Rural Bank was on a fast growth trajectory with solid fundamentals, urging customers to honour their loan obligations.
He also confirmed that the bank had met the regulatory minimum capital requirement of GHC1,000,000 and called on the public to keep investing in the institution.
On Corporate Social Responsibility, the bank supported community development with donations, including cement for the construction of a queen mother’s palace at Nkrankwanta, a 43-inch television set, and financial assistance to the Nkrankwanta Senior High Technical School.
