Kumawuman Rural Bank to focus on direct banking relationship

Alexander Adomako Mensah, Vice Board Chairman, addressing shareholders during the meeting

The Kumawuman Rural Bank Limited at Kumawu, in the Sekyere Afram Plains district of Ashanti Region, is strategising to embark on aggressive deposit mobilisation drive in the mix of damaged general confidence in the financial sector by focusing on direct banking relationship with customers.

The bank is seeking to pursue liquidity over profitability as an immediate measure in the current year to withstand the challenge.

It will also strive to further increase its share capital in times of banking sector recapitalisation and adopt effective risk management to reduce non-performing loans and toxic assets.

The primary objectives are to improve on the bank’s performance and make it more attractive; become more transparent; and make governance practices more efficient and sustainable with the view to continuously increase the wealth of shareholders.

The Vice Board Chairman, Alexander Adomako Mensah, made these known at the bank’s 26th Annual General Meeting of shareholders held last Thursday in the Presbyterian Church at Kumawu, Ashanti Region.

According to him, the bank operated in a challenging economic environment, largely due to higher inflation and higher operational cost. However, it made some satisfactory progress in its performance indicators.

In spite of the many challenges faced by the Board of Directors and Management, they worked hard during the year under review to raise Total Assets, Deposits, Paid-up Capital, Loans and Advances portfolios, but registered a drop in profits before tax as shown in the table below.

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The bank continues to offer assistance to communities and institutions within its catchment areas, in terms of community development projects and financial support including scholarship which amounted to GH¢62,910. The major social areas that benefitted include Education, Health, Sports, Recreation and Security.

The Board of Directors has recommended a dividend payment of GH¢255,114 at GHp3 per ordinary share for 2018, as against a transfer of GH¢253,673 from Income Surplus to the Stated Capital in lieu of dividend payment for bonus shares in 2017.

General Manager, Mr. Emmanuel Takyi Ankrah, in an interview with B&FT said the bank’s business focus in 2019 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.

He emphasised that the bank’s business model is still tailored for Micro, Small and Medium Enterprises, and will push for more market penetration as it develops new and better products, and ensures trusted relationships with clients.

Ashanti Regional Manager of ARB Apex Bank, Mr. George Annor, on behalf of the Managing Director, Mr. Kojo Mattah, congratulated the bank for its remarkable operational performance over the years.

He advised the Board and Management to institute risk management policies to identify, assess, monitor and control risks, since the banking business has become very competitive and risky.

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President of the Ashanti Chapter of Association of Rural Banks, Mr. Patrick Owusu, addressing the shareholders of Kumawuman Rural Bank urged them to have confidence in the board and be advocates of the bank.

He further advised shareholders to increase their shareholdings with the bank and anticipate a long-term benefit with their investments. He assured shareholders of the industry’s resilience, and told them to always disregard any rumour that seeks to dent the rural banking industry’s image.

 

Indicators 2018 2017
  GH¢ GH¢
Total Income 11,561,242    10,782,993
Operating Expenses 10,789,739    9602758
Profit Before Tax   590,249   996,931
Deposits 69,343,234  577,10,822
Loans & Advances 23,715,588  21,079,315
Investments 32,488,226  26,763,038
Total Assets 80,725,427  68,074,484
Stated Capital   2,845,512    2.522,546
Shareholders’ Funds   6,886,975   6,259,854
     

 

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