Rural and community banks want corporate tax cuts

Mr. Mathias Samwine – Chairman of the Board of Directors, RCB

Rural and Community Banks (RCBs) have called on the government to cut their corporate tax from 25 to 15 percent to allow them to keep some of their profits to embark on more corporate social responsibility projects in their communities. catchment areas

They are also convinced that such a move will go a long way in stemming rural-urban migration among young people, a development which they say has reached an alarming rate.

At the 31st Annual General Meeting of Sonzele Rural Bank in Jirapa in the Upper West region this weekend, Acting Managing Director of ARB Apex Bank, Mr. Alex Awuah, who made the appeal , also urged the Bank of Ghana (BOG) to lift the ban on dividend payments as soon as possible to encourage more people to buy shares in banks.

This, he said, would go a long way in improving the liquidity position of banks and also increasing their customer base.

“It should be noted that banks are recognized not by the profits they make or the expansion campaigns, but by the provisions of some of these corporate social responsibilities for people wherever they operate,” noted Mr. Awuah.

He praised Sonzele Rural Bank, headquartered in Jirapa, for posting a modest after-tax profit of GH ¢ 644,033 compared to GH ¢ 594,440.00 in 2019.

This represents an increase of eight percent.

The feat achieved by the bank is notwithstanding the restrictions related to the COVID-19 pandemic.

Congratulation

Mr. Awuah congratulated the bank for going so far as to rank first in the ranking of the National Unit for Monitoring the Efficiency (UEM) of BCRs by the ARP Apex Bank compared to the third position. last year.

Such an enviable achievement, he warned, should not make them complacent and therefore rest on their oars, but rather strive to consolidate the gains with more hard work.

He also congratulated Sonzele Bank for having put in place measures to adhere to good corporate governance practices aimed at promoting the interests of shareholders and depositors.

Mr. Awuah also praised the bank for exceeding the BoG’s capital requirement threshold of GH ¢ 1 million.

Financial results

In his report, the chairman of the bank’s board, Mr. Mathias Samwine, said the bank had undertaken what he described as a rigorous deposit mobilization exercise and had succeeded in increasing the deposit to 22 635,101 GH ¢ against 16,661,457 GH ¢ the previous year.

This represents a 36 percent increase.

This, Samwine said, resulted in pre-tax profit of GH ¢ 716,675 in the year under review, up from GH ¢ 792,587 the year before.

“Out of total assets, the increase in the bank’s asset base to GH ¢ 28,347,781 during the year under review, up from GH ¢ 22,976,231 in 2019 was an increase of 23%.

This meant that more resources were available to them to generate more revenue and ultimately increase shareholder value, ”he said.

Challenges

The chairman of the board said that the bank has always been committed to upholding its corporate social responsibility in order to improve its relations with communities.

He said their biggest challenge over the years has been the bank’s information communications (IT) connectivity for five branches and customers.

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