“It is as a result of the increase in Corporate Tax which hitherto we were paying 8 % but it has increased to 25 percent so obviously from 8% to 25 %, it will hit your bottom line.
The other thing is, investment rate has gone down generally and Atwima Kwanwoma Rural Bank we have a lot of investments in other financial institutions and with a drop in investments, definitely, our profit before tax also saw a drop.”
Atwima Kwanwoma Rural Bank, a member of Ghana’s Club 100 has already exceeded the Bank of Ghana’s minimum capital rate of 1 million Ghana cedis.
The bank’s current capital of 3.2 million Ghana cedis means it exceeded minimum capital requirement by over 200 percent.
Mr. Owusu says the bank is working tirelessly to strengthen liquidity to make it solvent against possible external shocks.
“Now we are not placing much emphasis on profit but on liquidity. We want to strengthen our liquidity base so that as a bank, we are very solvent so that we can meet the demands of our customers.”
The period under review, however, saw the bank’s deposits appreciate by 20 percent from about 73 million Ghana cedis in 2015 to 87 million Ghana cedis in 2016. Investment also grew by 25 percent.
The bank spent a 74 thousand Ghana cedis on corporate social responsibility, most of it going into education, health, and security, targeting the bank’s catchment area.