PERFORMANCE OF KINTAMPO RURAL BANK IMPRESSIVE (PAGE 23, JAN 9, 2010)

The consistent, positive performance of the Kintampo Rural Bank in the Brong Ahafo Region since it started business in 1980, has been recognised and appreciated by the government. The bank has, therefore, received a number of accolades, including the current best and number one bank in the Brong Ahafo Region.
The Apex Bank Monitoring and Evaluation Unit also ranked it third among five strong banks, out of the 127 rural/community banks in the country as of December 31, 2008. Recently it was adjudged the best managed rural and community bank in the northern sector of Ghana.
The Chairman of the Board of Directors of the bank, Dr Samuel Donyina-Ameyaw, announced this in a report presented on his behalf at the 24th Annual General Meeting of Shareholders of the bank. He said the “Net profit of the bank increased to GH¢239,497 in 2008 from GH¢142,009 the previous year.
He said the operating profit of the bank went up by 68.74 per cent from GH¢157,492 in 2007 to GH¢265,754 in 2008, while the returns on the bank’s assets had consistently remained above the benchmark level of five per cent.
During the year under review, Dr Donyina-Ameyaw further said, returns on the bank’s net worth went beyond GH¢888,237; from 20.9 per cent to 26.9 per cent at the end of December, 2008.
Its consistent growth in profits has resulted in an upward movement in the bank’s shareholder value.
On the other key financial indicators, the board chairman said the capital adequacy ratio of the bank stood at 31.9 per cent by December 31, 2008 as against 31.0 per cent as of December 31, 2007, and well above the Bank of Ghana’s (BOG’s) minimum requirement of 10 per cent.
According to Dr Donyina-Ameyaw, while growth in business and profits were the driving force of the bank, the emphasis was always on asset quality in the course of pursuing business expansion, which had resulted in improvement on non-performing loans (MPL) from 11.1 per cent in 2007 to 7.8 per cent in 2008.
“You will be pleased to learn that your bank, as in the past, surpassed all stipulated targets set and as you are aware, it has always been forward-looking and strategised to meet future challenges,” he told the shareholders.
The total business of the bank registered a 33.3 per cent growth, reaching the level of GH¢4,749,690, while total deposits rose to GH¢3,358,182 with gross advances of GH¢2,291,040, representing 41.4 per cent and 28.6 per cent respectively.