Nkrankwanta Area Community Bank Plc reported a 110 percent increase in profit before tax, reaching GHS 4.58 million in 2025. This strong financial performance marks a significant improvement from GHS 2.18 million recorded in 2024. The bank also saw its profit after tax climb by 133 percent to GHS 3.46 million, up from GHS 1.49 million in the previous year.
This robust growth was primarily fueled by a substantial expansion in customer deposits and a sharp rise in its lending portfolio. Customer deposits grew by 41 percent to GHS 82.30 million from GHS 58.33 million in 2024. Loans and advances showed even stronger growth, increasing by 113 percent to GHS 14.65 million from GHS 6.88 million, supporting local agriculture and small businesses.
The bank’s success comes amidst a challenging economic landscape characterized by declining interest rates. The Bank of Ghana reduced its monetary policy rate, causing Treasury bill yields to fall sharply. This environment typically pressures traditional banking income. Nkrankwanta Area Community Bank navigated these conditions by diversifying its income sources and increasing its focus on commercial lending activities.
Kwaku Agyemang-Manu, the Board Chairman, announced these results at the bank’s 16th Annual General Meeting of Shareholders. He highlighted that the deposit growth reflected continued customer confidence and loyalty. He also noted that the expanded lending portfolio directly supported key sectors like agriculture, trading, and micro-credit within its operating communities. This strategic focus allowed the bank to thrive despite broader market shifts.
Investments remained a crucial part of the bank’s financial strategy, growing by 31 percent to GHS 63.83 million from GHS 48.73 million. This GHS 15.10 million increase demonstrates prudent liquidity management and efforts to optimize returns from short-term instruments. The stronger earnings also boosted shareholders’ funds, which rose by 70 percent to GHS 8.07 million from GHS 4.74 million. Stated capital also increased by 12 percent to GHS 1.55 million from GHS 1.38 million, showing a healthier capital base.
Despite this impressive financial turnaround, the bank faces an urgent capitalisation challenge. Under a new regulatory framework, the Bank of Ghana requires the institution to raise its paid-up capital to GHS 5 million by December 31, 2026. This is a significant jump from its current GHS 1.55 million. This requirement is part of broader reforms aimed at strengthening capital, governance, and supervision within Ghana’s microfinance and specialised deposit-taking sector. The reforms seek to enhance overall financial sector resilience.
The bank plans to continue pursuing sustainable growth, expanding its digital banking services, and improving operational efficiency. It also aims to strengthen its capital base further while deepening support for local businesses and households. The proposed GHS 350,000 dividend for shareholders, equivalent to GHS 0.11 per share, reflects the improved performance and commitment to shareholder returns, pending Bank of Ghana approval. This dividend is an increase from the GHS 0.08 per share proposed for 2024. The bank's ability to meet the new capital requirement will be a key indicator of its future stability and growth trajectory in the evolving financial landscape.