Despite the troubling operational period, Capital Rural Bank at Abesim near Sunyani in the Brong Ahafo Region managed to post satisfactory growth in most of the performance indicators during the 2015 fiscal year.

In the face of the wobbly macroeconomic environment during the period under review, coupled with the infamous microfinance institutions in the Brong Ahafo Region, that eventually crumbled the local economy, Capital Rural Bank like many other banks, particularly suffered huge uncharacteristic withdrawals and alarming bad loans.

At a certain point in time, the bank recorded a drop in deposit by GH¢1milllion within a month; this and many impinged on the successes of the bank in the shape of its operational results, therefore translating into modest gains.

The bank recorded a 2% marginal increase in deposits from GH¢10,175,708 in 2014 as against GH¢10,415,519 in 2015 year under review; investments made by the bank in 2015 summed up to GH¢2,976,491, representing 10% growth over the previous year figure of GH¢2,715,192.

It was a grief-stricken moment when Mrs. Patricia Preprah-Agyemang, chairperson, Board of Directors of the Bank stood to present this report at the 11th annual general meeting of shareholders held at the premises of P.A. Capital School. She sorrowfully paid glowing tribute to her late husband and predecessor, Dr. Edward Yaw Prepah-Agyemang who died on February 5th this year for his invaluable contribution to the history of the bank.

The sudden demise of Dr. Prepah-Agyemang happened as a result of shock on that Friday, upon hearing the unpleasant news that fire had guttered P.A. School, subsidiary of Capital Group of Companies of which Capital Rural Bank is a subset.

She said the litany of operational challenges took a massive toll on the turnover of the bank as 2015 profit before tax stood at GH¢436,304, declining by 27% from GH¢600,294 in 2014; total income amounted to GH¢2,871,103 as compared to GH¢3,010,754 in the previous year.

By the close of the 2015 financial year, the total assets’ value of the bank depreciated by 3% from GH¢13,988,727 to GH¢13, 544,949. Loans and advances in 2015 add up to GH¢7,410,877 as against GH¢8,118,690 in 2014, representing 9% decrease. However, shareholders’ funds slightly increased from GH¢2,276,415 in 2014 to GH¢2,307,933, indicating 1% increase.

Mrs. Preprah-Agyemang noted that notwithstanding the not too pleasing performance, the Board of Directors proposed a dividend of GH¢0.015 per share. The price per share of the bank is currently GH¢1.40. She thanked all stakeholders of the bank for their immense contribution and support during the difficult times.

Mr. Stephen Yaw Adu-Yeboah, General Manager said the bank has outsourced ‘cheap funding’ to provide mechanized boreholes in all its operational areas to help ease the burden of high cost of potable water. “After the completion of the project, it will be managed by the bank and later hand over to the respective communities after full cost recovery. The bank will replicate the gesture within other areas if the first phase becomes a success,” he added.

He stated that the bank is committed to programmes that would diversify its income base, and in that regard it will focus on improving the fee-based income, mend credit delivery as well as prudent risk management to make it more profitable and socially relevant to the people.