Financial performance appraisal of Atwima Kwanwoma Rural Bank

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Rural banking system in Ghana has been the major if not only source of financial services to the rural majority. Atwima Kwanwoma Rural Bank (AKRB) has been recognized as one such bank that is making impressive performance in the sector. However, since no bank can be too big to fail, this study was conducted to appraise the financial performance of AKRB and its potential to stand the test of time and competition which has taken a new level altogether in the industry. Financial statements for the last eight years (2000 - 2007) were use to appraise the bank’s performance in the light of the research objectives. Financial ratios were derived from the financial statements for the purpose of the appraisal. However, explanatory information was sought by means of an interview with the bank’s manager. Findings from the study showed that the bank is doing well in profitability, assets quality, and liquidity and improving upon its infrastructure as well. But the bank’s capital adequacy has not been attended to with any cautious effort. The study arrived at conclusion that the bank has potential for growth given the quality nature of its assets and profit performance It was recommended that the bank had to pay critical attention to capital adequacy and the caliber of its human capital to enable it face the current trend in the sector fully.
A Dissertation submitted to the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the Degree of Master of Business Administration, 2008