The Nkoranza-Kwabre Rural Bank Limited at Akuma in the Nkoranza Municipality of the Bono East Region has managed to beat the February 2020 deadline set by the Bank of Ghana for all rural and community banks (RCBs) to raise the GH¢1million minimum capital requirement.

The Efficiency and Monitoring Unit of Association of Rural Banks, Apex Bank has upgraded Nkoranza-Kwabre Rural Bank from Fair to Satisfactory Category following improvement in its operations.

As at November 2019, the share capital of the bank stood at GH¢1,011,000 – slightly above the regulator’s minimum threshold. The bank achieved this feat following vigorous share mobilisation, especially among the Board of Directors and staff.

The Board Chairman of Nkoranza-Kwabre Rural Bank, Kofi Sarfo Kantanka, announced this at the 34th annual general meeting of shareholders held at Akuma. He said in order for the bank to consolidate its capital base, as well as raise more funds for liquidity support, it has also resorted to listing on the Ghana Alternative Market (GAX).

The bank, he indicated, conceived the idea in November 2018; but the clean-up by the Securities and Exchange Commission (SEC) – revoking the licences of 53 investments firms – halted the process. However, the bank in consultation with the ARB Apex Bank has reactivated that move by engaging new advisors to facilitate listing on the Alternative stock market.

Performance indicators

The bank posted satisfactory performances in all indicators during the 2018 financial year under review. Total deposits soared by 18%, increasing from a little over GH¢6.78million in 2017 to approximately GH¢7.98million in 2018. The bank also increased its investments portfolio from GH¢1.73million to GH¢2.28million – indicating a 32% change.

Loans and advances during the period under consideration went up from GH¢4.19million to GH¢4.98million, showing a difference of 19%. The bank’s total assets also grew by 18%, rising from GH¢8.24million to GH¢9.71million. The bank made a profit of GH¢55,650 in 2018, representing an impressive 81% more than the 2017 profit of GH¢30,717.

As at December 2018, the stated capital of the bank was GH¢404,730 as compared to GH¢331,070 at the same period in the previous year. On the other hand, shareholders’ fund increased by 31% from GH¢415,356 in 2017 to GH¢544,666. The increment is the result of profit gains during the period.

CSR & outlook

Commenting on corporate social responsibility, the Board Chairman said the bank made donations toward the celebration of Farmers’ Day in the three operational districts – Nkoranza South Municipal, Techiman South Municipal, and Techiman North district. Mr. Kantanka added that the bank also supported the Nkoranza Fire Station with a swivel chair, and gave 20 dual-desks to Donkro-Nkwanta Senior High School, among others.

In an interview with B&FT, Frank Dwamena Mensah – General Manager of Nkoranza-Kwabre Rural Bank, revealed that the bank is expected to meet all the necessary requirements by June 2020 to aid the proposed listing on GAX, indicating that the move will make the bank more attractive to prospective shareholders – since there will be opportunity to trade-off shares whenever the need arises.

He expressed optimism that with an end to the financial sector clean-up, customer confidence will be awakened to boost deposit mobilisation. “We are going to embark on outreach programmes in remote communities within our catchment area. We will also intensify public education to sell our products and services to the people.”