Dr Adomako-Mensah is the Board Chairman Kumawuman Rural Bank PLC
Kumawuman Rural Bank PLC at Kumawu in the Sekyere Kumawu District, in Ashanti Region, has recorded an impressive operational performance for the year ending December 31, 2024, achieving a 420.44 percent growth in profit before tax despite a challenging macroeconomic environment.
The Bank posted a profit before tax of GH¢24.52 million in 2024, up from GH¢4.71 million in 2023. Total revenue also rose sharply by 63.64 percent to GH¢69.96 million, compared to GH¢42.75 million in the previous year. Total expenditure increased marginally by 19.44 percent, reaching GH¢45.43 million.
Kumawuman Rural Bank’s total assets grew significantly by 52.57 percent to GH¢401.87 million from GH¢263.41 million in 2023. Deposits also expanded by 45 percent, growing from more than GH¢255 million to GH¢370.68 million, underscoring public confidence in the Bank’s services and products. The Bank’s share capital improved from GH¢3.67 million to GH¢4.70 million, representing a 28.01 percent increase.
Speaking at the 32nd Annual General Meeting (AGM) of Shareholders, the Chairman of the Board of Directors, Dr Alex Adomako-Mensah, attributed the strong results to aggressive deposit mobilisation, product innovation, and enhanced risk management practices.
He emphasised that the Bank’s robust balance sheet and growing customer confidence has positioned it for sustained growth in the years ahead.
According to Dr Adomako-Mensah, the high growth of deposits shows the confidence the general public and customers reposed in the Bank.
He therefore expressed appreciation for the continued support of the Banks loyal customers and the hard-working staff of the Bank adding that the board and management are resolute to continue to formulate strategic policies and plans to improve on deposit mobilisation while miniminsing the associated corresponding market risk.
He was of the belief that the strength of the balance sheet, risk management practices, customer confidence, and digital banking will be the catalyst that will drive its financial performance in the coming years.
Capital injection
According to Dr Adomako-Mensah, in line with the Bank’s capital restoration plan initiated in 2022, shareholders have been urged to inject additional funds to meet the remaining GH¢3.3 million out of a total capital requirement of GH₵5.1 million.
Dividend payment
In a gesture that marks a new phase of growth, the Board of Directors recommended a dividend payment of GH₵900,590, ending a long wait for shareholders.
Corporate Social Responsibilities
In pursuance of the Bank’s vision to promote community development in its catchment areas, and make progress towards a more inclusive, sustainable, and prosperous future, the Bank extended support to communities, Institutions, and Projects totaling almost GH¢500,000. Most of the support went into health, education and Agriculture projects.
Future Outlook
The Chief Executive Officer of the Bank, Evans Sarfo-Kantanka reaffirmed the Bank’s commitment to its strategic vision of becoming one of the top five Rural and Community Banks (RCBs) in Ghana.
In an interview with the Business & Financial Times, Mr. Sarfo-Kantanka explained that the Bank is pursuing this goal through aggressive deposit mobilisation, the introduction of innovative products and services, and strategies aimed at sustaining growth in deposits and total assets.
He noted that the board and management have also implemented robust credit and operational risk management measures to help reduce non-performing loans and improve asset quality. These measures, he said, will ensure the equitable distribution of the bank’s assets through quality lending and investments in low-risk, high-yield sectors to maximise profitability.
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