Kintampao Rural Bank records 52% profit growth

Kintampo Rural Bank Limited in the Brong Ahafo Region has posted a sound performance in almost all financial indicators as pre-tax profit increased by 52% from approximately GH¢590,000 in 2011 to over GH¢900,000 in the 2012 financial year under review.

The Bank, rated 10th strong RCB in the country and the first in Brong Ahafo saw its total business grew from GH¢11.09million in the previous year to GH¢13.43million in 2012, representing a percentage growth 21 whilst total deposits went up by 33% to reach GH¢9.32million.

Dr. Samuel Donyina-Ameyaw, Board Chairman, disclosed this in a report delivered on his behalf during the 28th Annual General Meeting of shareholders held at Kintampo over the weekend.

Kintampo Rural Bank during the year under review laid major thrust on lending to agriculture, SMEs, transport and retail segment, and pursued vigorous strategies to make significant inroads into these priority areas -- but experienced low performance in the agric and above-mentioned commercial activities due to poor recovery of loans advanced to customers.

While salaried workers advances increased significantly by 94% to reach GH¢3.05miliion, credit to support commercial and agricultural activities improved only by 12.1% to peg at GH¢2.79million while the credit to deposits ratio stood at 56%.

The Bank is of the view that acquisition of new clients as well as fortifying the relationship with existing ones can only augment steady and sustainable business growth. Dr. Donyina-Ameyaw said: “With this firm conviction and commitment, the bank added 3,597 new customers to make a strong contingent of 47,130 customers.”

Under the inclusive growth, he noted that the bank seeks to reach the unreached in remote rural areas and the urban poor to provide financial means for people to create or enhance their capabilities for improving their livelihood. To this end, Kintampo Rural Bank has made “aggressive” moves to expand its operations at the Techiman market, the biggest and most vibrant commercial hub in the region by end of 2014.

He continued that the bank’s business policy for 2013 has emphasised thrust on efficient pricing of deposits and loans; higher “SUSU” mobilisation and penetration into the SME landscape; developing priority sectors; agricultural advances and gradual scaling down of dependence on bulk business for improving margins. Online opening of deposits by customers through Internet banking is also under consideration.

The Board of Directors of the bank has recommended a dividend payment of GH¢120,000 being 15% of the previous year’s profit. That is, GH¢0.026 per share.

Meanwhile, the bank as part of its corporate social responsibility has donated 500 plastic chairs valued at GH¢6,000 to the Kintampo Senior High School to furnish its Assembly Hall as hitherto students had to stand during any gathering. Assistant Headmaster Naazelle Baadenuur Kpunr who received the chairs on behalf of the School sincerely thanked the Board and Management of the Bank for the kind gesture.