Kumawuman Rural Bank PLC has delivered one of the most impressive turnarounds in Ghana's rural banking sector, posting a profit before tax of GH₵24.52 million for 2024, up from GH₵4.71 million the previous year. That's a staggering 420.44 percent increase, achieved despite Ghana's challenging macroeconomic headwinds throughout the year.
The Kumawu-based bank, operating in the Sekyere Kumawu District of Ashanti Region, saw its total revenue climb sharply by 63.64 percent to GH₵69.96 million, compared to GH₵42.75 million in 2023. What's particularly striking is that the bank managed this growth while keeping expenditure increases relatively modest at 19.44 percent, reaching GH₵45.43 million.
Total assets expanded significantly by 52.57 percent, growing from GH₵263.41 million to GH₵401.87 million. Perhaps more telling is the bank's deposit growth, which surged 45 percent from just over GH₵255 million to GH₵370.68 million. This deposit expansion signals something important: customers are voting with their wallets, demonstrating renewed confidence in rural banking after years of sector turbulence.
At the bank's 32nd Annual General Meeting (AGM) of Shareholders, Board Chairman Dr. Alex Adomako-Mensah attributed the strong performance to what he called a three-pronged strategy: aggressive deposit mobilization, product innovation, and enhanced risk management practices. The bank's share capital also improved from GH₵3.67 million to GH₵4.70 million, representing a 28.01 percent increase.
Dr. Adomako-Mensah emphasized that the robust balance sheet and growing customer confidence have positioned the institution for sustained growth. He expressed appreciation for the loyalty of customers and the dedication of staff, while noting that the board and management remain committed to formulating strategic policies that will continue driving deposit mobilization while managing associated market risks.
Looking ahead, Dr. Adomako-Mensah pointed to several factors he believes will catalyze future financial performance: the strength of the balance sheet, refined risk management practices, customer confidence, and digital banking capabilities.
The bank hasn't forgotten its capital obligations either. In line with a capital restoration plan initiated in 2022, shareholders have been urged to inject an additional GH₵3.3 million out of a total capital requirement of GH₵5.1 million. It's a reminder that growth requires continuous investment, even when performance is strong.
In a move that will please long-waiting shareholders, the Board of Directors recommended a dividend payment of GH₵900,590, marking what the bank describes as "a new phase of growth." For shareholders who've weathered difficult years in Ghana's rural banking sector, this payment represents more than just financial returns.
The bank also demonstrated its commitment to community development, extending support totaling almost GH₵500,000 to communities, institutions, and projects. Most of this went toward health, education, and agriculture initiatives, reflecting the bank's vision to promote inclusive and sustainable development in its catchment areas.
Chief Executive Officer Evans Sarfo-Kantanka reaffirmed the bank's ambition to become one of the top five Rural and Community Banks (RCBs) in Ghana. Speaking with the Business & Financial Times, he explained that this goal will be pursued through continued aggressive deposit mobilization, innovative products and services, and strategies aimed at sustaining growth in deposits and total assets.
Sarfo-Kantanka noted that robust credit and operational risk management measures have been implemented to reduce non-performing loans and improve asset quality. These measures, he said, will ensure equitable distribution of the bank's assets through quality lending and investments in low-risk, high-yield sectors to maximize profitability.
The performance represents a remarkable turnaround for Kumawuman Rural Bank, which like many rural banks faced significant challenges following Ghana's domestic debt exchange program and the broader financial sector cleanup. The 2024 results suggest that with focused strategy and disciplined execution, rural banks can not only survive but thrive in Ghana's evolving financial landscape.