Nkrankwanta Area Community Bank Plc at Nkrankwanta in the Bono Region more than doubled profit in 2025 as stronger deposits and a sharp expansion in lending helped offset the pressure on banking margins from falling interest rates.
Profit before tax rose 110% to GH¢4.58 million from GH¢2.18 million a year earlier. Profit after tax climbed 133% to GH¢3.46 million, while earnings per share more than doubled to GH¢1.05 from GH¢0.50.
The result came as the Bank of Ghana cut its policy rate during the year and Treasury bill yields fell sharply, squeezing returns from the government securities that have traditionally been a major source of income for banks. Nkrankwanta said it responded by diversifying income and increasing commercial lending.
Customer deposits rose 41% to GH¢82.30 million from GH¢58.33 million, providing the funding base for a 38% increase in total assets to GH¢94.56 million.
The Chairman of the Bank, Kwaku Agyeman-Manu, in an address at 16th Annual General Meeting of Shareholders attributed the deposit growth to customer confidence and loyalty, saying it was achieved despite the lower interest-rate environment.
Loans and advances were the fastest-growing major balance-sheet item, surging 113% to GH¢14.65 million from GH¢6.88 million. The bank said the expanded portfolio supported agriculture, trading, salaried workers, cottage industries and micro-credit activities in its operating communities.
The rapid loan expansion also increases the importance of credit quality. The bank reported gross loans of GH¢16.80 million at year-end, against impairment provisions of GH¢2.14 million, leaving a carrying amount of GH¢14.65 million.
Investments in securities increased 31% to GH¢63.83 million from GH¢48.73 million, adding GH¢15.10 million to the portfolio. The chairman said the increase reflected liquidity management and efforts to optimise returns from short-term instruments.
The improvement in earnings translated into a stronger equity position. Shareholders’ funds rose 70% to GH¢8.07 million from GH¢4.74 million, while stated capital increased 12% to GH¢1.55 million.
The bank has proposed a GH¢350,000 dividend, equivalent to GH¢0.11 a share, up from GH¢0.08 in 2024, subject to Bank of Ghana approval.
The stronger financial results, however, come with a significant capital requirement. Nkrankwanta must raise its stated capital to GH¢5 million by December 31, 2026 under the new regulatory framework for community banks. Its GH¢1.55 million capital at the end of 2025 leaves a substantial funding gap.
The bank’s transition from a rural bank to a community bank also brings tighter governance and prudential requirements. The new framework is intended to strengthen capital, oversight and financial-sector resilience, while requiring institutions to meet higher minimum capital thresholds.
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