Graphic Business News

Kintampo Rural Bank posts impressive results

By: Emmanuel Adu-Gyamerah, KINTAMPO
Mr Yaw Effah-Baafi, the Board Chairman of the bank, addressing the shareholders at the 33rd AGM at Kintampo
Mr Yaw Effah-Baafi, the Board Chairman of the bank, addressing the shareholders at the 33rd AGM at Kintampo

THE KINTAMPO Rural Bank in the Brong Ahafo Region will pay a total dividend of GH¢339,357 to its shareholders, which is 25 per cent of its net profit for 2017, the Board Chairman of the bank, Mr Yaw Effah-Baafi, has announced.

At the 33rd annual general meeting (AGM) of shareholders of the bank at Kintampo last Saturday, he explained that the amount translated into a dividend of GH¢0.0264 per share.

In all, the bank made GH¢1,862,460 as its profit before tax in 2017 as against GH¢1,752,021 and a net profit of GH¢1,357,429 in 2017 as against GH¢1,278,236 in 2016.

Financial performance
Addressing the shareholders, Mr Effah-Baafi said the total assets of the bank grew by 19.87 per cent from GH¢27.455 million in 2016 to GH¢32.912 million in 2017, while the total deposits closed at GH¢21.905 million in 2017 from GH¢17.138 in 2016.

In addition, the shareholders’ fund also saw an increase from GH¢6.890 million in 2016 to GH¢8.167 million, representing an increase of 17 per cent.

Mr Effah-Baafi said the bank extended loans and overdraft facilities of GH¢10,804,917 to 4,394 customers, representing an increase of 15.10 per cent over the amount extended as loans and overdraft in 2016.

He stated that even though the bank continued to extend credit to many customers, some beneficiaries continued to default repayment, resulting in a high non-performing loan ratio.

Mr Effah-Baafi added that the bank had, therefore, contracted a debt recovery company to retrieve loans from the recalcitrant defaulters and advised such people to pay their overdue loans in their own interest to avoid any embarrassment.

“The bank maintained a relatively high capital adequacy ratio of 38.68 per cent, which is well above the minimum regulatory requirement of 10 per cent, providing an ample buffer against any eventualities,” he stated.

Minimum capital requirement
Mr Effah-Baafi said the bank had met the minimum GH¢1 million as directed by the Bank of Ghana.

He, however, urged the shareholders to increase their shareholdings to enable the bank to invest in capital projects such as ATMs and E-Banking propositions to serve its customers and shareholders better.

On corporate social responsibility (CSR), Mr Effah-Baafi said the bank continued to support the communities in its catchment areas with tangible projects.

He explained that in 2017, an amount of GH¢47,175 was spent on CSR as compared to the GH¢29,215 spent in 2016.

ARB Apex Bank
Addressing the shareholders, the Brong Ahafo Regional Manager of the ARB Apex Bank, Mr Mark Odoi Adjei, commended the Kintampo Rural Bank for being the best rural bank in the region and one of the best in the country.

He also praised the bank for working hard to meet the minimum GH¢1 million capital requirement as directed by the Bank of Ghana and advised the management not to be complacent but continue to adopt more share mobilisation strategies to shore up its minimum capital.

Mr Adjei called on the rural bank to take advantage of the introduction of the Mobile Money Interoperability Project to help customers to transfer funds from their bank accounts to their mobile money accounts and vice versa.

That, according to him, would enable them to benefit from the new system and increase their income.

Mr Adjei also asked them to put in place adequate measures to prevent fraudsters from duping their banks. —GB