The Kumawuman Rural Bank has recorded one of its strongest financial performances in recent years, posting a remarkable 420 percent rise in pre-tax profits and setting its sights on sustaining the growth through digital transformation and capital expansion.
Addressing the 32nd Annual General Meeting held in Kumawu, Board in the Sekyere Kumawu District of the Ashanti Region, Chairperson, Dr. Alexander Adomako-Mensah announced that the bank’s profit before tax had surged from GH¢4.7 million in 2023 to GH¢24.5 million at the end of the 2024 financial year.
He credited the turnaround to renewed investor confidence and a vigorous deposit mobilization campaign.
“The bank recorded strong financial results for the year, which were attributable to aggressive deposit mobilization,” Dr. Adomako-Mensah stated.
The institution’s total deposits grew by 45 percent, reaching GH¢255 million, as customers responded positively to new products and improved service delivery.
Total revenue for the year jumped 63.6 percent, from GH¢42.7 million to GH¢69.9 million, while total assets climbed to GH¢401.9 million, up from GH¢263.4 million in 2023 — a 52.6 percent increase.
Despite the bank’s expenditure rising by 19.4 percent, profitability remained robust, allowing the board to approve GH¢900,590 in dividends to shareholders.
“I know we have long awaited the payment of dividends, but the wait is over,” Dr. Adomako-Mensah assured shareholders, drawing applause at the meeting.
Kumawuman Rural Bank’s capital growth plan, launched in 2022 continues to gather momentum as the bank raised over GH¢1.7 million in new share purchases out of a targeted GH¢5.1 million,
Dr. Adomako-Mensah was positive with the support of his board, management and staff, the bank would meet the remaining GH¢3.3 million requirement.
He assured that the bank is adopting new systems to enhance deposit growth, ensure the quality of its loan portfolio, and explore low-risk investment opportunities to protect shareholder value.
Kumawuman Rural Bank is leveraging heavily on technology-driven solutions and prudent risk management to maintain profitability with an emphasis on innovation and efficiency.
“The focus will be on expanding digital services, improving credit risk controls, and reducing non-performing loans. The institution’s future lies in “maintaining our growth momentum while leveraging technology to remain profitable and resilient,” the board chair disclosed.
These growth figures are key to supporting Kumawuman Rural Bank’s broader targets of positioning the bank among the top five rural and community banks in Ghana.
By: Ivan Heathcote – Fumador.
