The Kumawuman Rural Bank is assuring shareholders of at least thirty million cedis in profit by the close of the current financial year.
This comes after the Bank recorded a profit before tax of over 24.5 million cedis from 4.7 million cedis recorded in 2023, representing a 420 percent increase in profit.
Speaking at the 32nd Annual General Meeting of the Bank, Chief Executive Officer Dr. Alexander Adomako-Mensah attributed the gains to an increased deposit mobilization drive.
“The bank recorded strong financial results for the year, which were attributable to aggressive deposit mobilization,” he said.
The Bank’s deposits grew by 45 percent, driven by improved products and services introduced by the management.
For the performance, an amount of Gh¢900,590 was paid as dividends to the shareholders.
Dr. Adomako-Mensah added, “I know we have long awaited for the payment of dividends, but the wait is over.”
In the year under review, total revenue grew by 63.64% from Gh¢42.7 million in 2023 to close at Gh¢69.9 million in 2024.
The deposits stood at Gh¢255 million by the close of 2024.
The Bank’s balance sheet remained strong, with a total asset base of Gh¢401,868,562 compared to Gh¢263,406,559 in 2023, indicating a growth of 52.57%.
The Bank announced an expenditure growth of 19.44%.
Capital Injection and Future Outlook
In 2022, the Bank set a target to increase capital by Gh¢5.1 million in three years. By the close of the 2024 financial year, over Gh¢1.7 million was recorded in new shares purchased.
The Board of the Bank is calling on its shareholders to invest in more shares to meet the remaining capital requirement of Gh¢3.3 million.
The Bank targets to be counted among the top five Rural and Community Banks in the country.
To achieve this, the Board, through Management, is embarking on aggressive deposit mobilization by developing new products and services and strategies to maintain the growth of the Bank’s deposit and total assets.
The Bank is also adopting effective measures in managing credit and other operational risks, which will result in the reduction of non-performing loans and assets, while ensuring equitable distribution of assets by granting quality loans and investing in low-risk investment sectors to maximize profitability.
The Bank is bent on leveraging technology to stay profitable.