Mponua Rural Bank Limited has recorded a profit before tax of GH¢1.56 million for the 2019 financial year.
Last year’s growth which represents 8.36 per cent was, however, lower than what was recorded the previous year which growth stood at 14.44 per cent.
The drop in profit growth was attributed to the unrealised interest on locked-up funds.
This was disclosed by the Board Chairman of the bank, Mr George Osei Ameyaw, at its 26th annual general meeting.
The bank’s total assets, however grew from GH¢28.54 million in 2018 to GH¢33.56 million in 2019, representing a rise of 17.57 per cent, with deposits also growing from GH¢23.49 million to GH¢27.70 million, representing an increase of 17.95 per cent within the same period.
Loans and advances also increased from GH¢6.4 million in 2018 to GH¢7.3 million in 2019, representing a growth of 15.58 per cent, while stated capital also grew from GH¢1.7 million to GH¢2.4 million.
Mr Osei Ameyaw said the increase in total assets was as a result of an increase in deposits and shareholders’ funds.
He said the bank lent an amount of GH¢14.04 million to support various economic and personal activities in 2019.
That, he said, represented an increase of 17.75 per cent over the amount of GH¢11.92 million in 2018.
“The granting of loans and advances constitutes the core business to promote economic and individual activities.
The gross funds disbursed for the reviewed period was GH¢14.04 million as against GH¢11.92 million for 2018, recording a growth of GH¢2.12 million or 17.79 per cent.
The chairman pointed out that the directors did not propose the payment of dividend in view of the directives from the Bank of Ghana to that effect.
On corporate social responsibility, he said, it remained a key part of its operating model during the year, as it continued to support the Asante Akim South and Birim North District Assemblies and Kwahu West Municipal Assembly during the celebration of the 2019 National Farmers’ Day.
Commenting on the way forward for the bank, he said the board and management of the bank would continue to adopt stringent policies to ensure the safety of staff and the public for a healthy working environment.
“The bank would pursue a modernisation agenda to provide convenient services to the public, strengthen credit management, intensify deposit mobilisation, facelift operational offices to enhance its image, adhere to regulation, norms, and strengthen internal control to mitigate fraud.
“The future looks quite bright in spite of the challenges posed by COVID-19. The bank will adapt and innovate in order to aggressively grow its business to create value for our shareholders and customers,” he stated.