Mponua Rural Bank records positive financial performance
MPONUA Rural Bank has posted positive financial results in the 2022 financial year.
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The bank achieved a profit of GH¢1.6 million in the year under review.
This showed a growth of 38.36 per cent as against a decline in growth of 19.27 per cent recorded in 2021.
This was attributed to the increase in income realised from earning assets in Government of Ghana Treasury Bills and loans and advances during the year under review.
The Board Chairman of the bank, Andrews Ameyaw, who announced this at the bank’s annual general meeting (AGM), said total assets increased by 29.62 per cent to GH¢64.96 million in 2022 generally due to the growth in deposits and shareholders’ funds by 29.86 per cent and 20.01 per cent to the levels of GH¢53.66 million and GH¢8.80 million respectively.
Within the same period in review, savings deposits continued to be the major source of fund mobilisation, with a share of 43 per cent while ‘Susu’ followed with 36 per cent.
Mr Ameyaw also noted that total loans and overdrafts disbursed in 2022 recorded a marginal increase of GH¢0.45 million or 1.81 per cent from GH¢24.70 million in 2021 to GH¢25.15 million.
“This was a result of a drop in agricultural loans, mainly to cocoa farmers, who delayed the repayment of previous loans.
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“The only economic sector that showed a decline in funding is agriculture, arising from a delay in repayment of previous loans granted to the cocoa sub-sector. However, agriculture continued to be the largest beneficiary of loans with a share of 47.0 per cent, down from 57.0 per cent in 2021, while transport enjoyed the least of 4.0 per cent with a leap from 2.0 per cent in 2021.
“Lending to the transport sector recorded a remarkable growth of 82.20 per cent enticed by the prompt scheduled repayments,” he added.
Liquidity reserve position
Mr Ameyaw said the bank continued to show a strong liquidity position in maintaining public confidence in the safety of their deposits.
For instance, he said throughout the year under review the bank posted healthy prescribed reserves with primary reserve, that is cash and bank balances, of 24.56 per cent and secondary reserve, that is, investments in government securities, of 64.86 per cent as against the minimum regulatory requirements of 8.0 per cent and 30.0 per cent respectively as at end December 2022.
He said the liquidity cover for deposits as at end December 2022 stood at 89.42 per cent pitched against 38.0 per cent as prescribed, adding: “The strong liquidity position is an indication of how efficiently the bank is being managed.”
Dividend
Despite the strong financial performance, he said the Board of Directors did not recommend the payment of dividends for the year in review.
“This decision is guided by the directives of the Bank of Ghana to banks not to pay dividends with the objective of building adequate reserves to support operations,” he explained.
Outlook
Regarding the outlook for the bank, Mr Ameyaw said the board and management would deepen policies to further improve performance by vigorously pursuing the bank’s strategic objectives based on achieving satisfactory customer service through modernising operations, strong liquidity to secure public confidence and diversifying credit financing.
He said the bank would also intensify recoveries, relentlessly adhere to regulatory norms and maintain and attract high-quality personnel through improved conditions of service. “Further, some agencys’ premises would be given a facelift to make them more attractive and conducive in doing business,” he said.