Nsoatre (B/R), Aug. 3, GNA – The Nsoatreman Rural Bank in the Sunyani West Municipality of the Bono Region made a profit of GhC605,209.00 in 2021.
That moved the Bank from a net loss of GhC679,268.00 incurred in 2020, representing an astronomical profit before tax growth of 189.10 per cent.
Mr Kofi Agyemang, Chairman Board of Directors, announced this at the 32nd annual general meeting of Shareholders of the Bank at Nsoatre and commended the Management and staff for “working to keep the Bank above waters”.
On deposits, he said, “the effects or the locked-up funds which were impaired by Bank of Ghana against Rural and Community Banks and the COVID-19 pandemic caused a stunted growth of our total deposits”.
Notwithstanding, Mr Agyemang said, the deposits grew from GhC30.9 million in 2020 to GHC33.3 million in 2021, indicating a 7.7 per cent growth.
He said the Bank’s total assets grew to 10.82 per cent as it increased from GhC33.4 million in 2020 to GhC37.1 million in 2021.
Mr Agyemang said although COVID-19 brought in its trail an astronomical increase in non-performing loans in 2020, “the Bank had no alternative than to increase total loans advances to make more profit, which yielded good results”.
This, he indicated, raised the Bank’s advances by 12.22 per cent from GhC10.1 million in 2020 to GhC11.4 million in 2021.
On share capital, Mr Agyemang said the bank’s investments rose to 11.97 per cent from GhC15.7 million in 2020 to GhC17.05 million in 2021.
He noted, “Rural Banks were lucky the Bank of Ghana’s (BoG’s) share capital requirement remained GhC1million by the close of 2021 and the Nsoatreman Rural Bank made an increase in its shares from GhC1.4 million in 2020 to GhC1.5 million in 2021.
Mr Agyemang said, “there is every indication that the BoG is going to increase the share capital requirement above GhC2 million and, therefore, encouraged the shareholders to increase their shares to avoid sanctions against the Bank in future.
Mr Isaac Owusu Gyamfi, the President, Association of Rural Banks, B/A Chapter, in an interview with the Ghana News Agency, expressed worry over the non-payment of loans facilitated by staff of Rural Banks to their family members, saying it was affecting the banks’ positive performance.
GNA