By Seth KRAMPAH, Kumawu
The Kumawuman Rural Bank PLC at Kumawu in the Sekyere Kumawu District of Ashanti Region has posted growth in all financial indicators in the 2023 year under review.
The Bank recorded profit before tax of a little over GH¢ 3.8 million in the year under the review as against about GH¢ 8.6 million technical loss through impairment in the previous year representing an impressive positive growth of 143.95%.
The Bank’s total deposit grew from approximately GH₵192 million in the year 2022 to a little over GH₵255million in 2023 representing 32.55% growth. The satisfactory growth of the deposits shows the confidence the general public and the cherished customers have in the Bank.
The Board and Management remain resolute to continue to formulate strategic policies and plans to improve on the deposit mobilization while minimizing the corresponding market risk associated with it.
The Bank’s Total Assets also grew from GH₵195 million in 2022 to GH₵263.4 million in 2023 representing 35.30% increase.
The share capital of the Bank grew significantly from GH₵2.961946 as at the year 2022 to
GH₵3,674,917 in the year under review showing 24.07% growth.
Operational Environment
The Chairman of the Board of Directors Dr. Alexander Adomako Mensah announced these and more at the Bank’s 31st Annual General Meeting of shareholders held last Thursday at Kumawu in Ashanti.
According to him, the year 2023 saw a gradual recovery in economic activities post-domestic debt exchange programme (DDEP), though growth remained below expectation. Real GDP was 2.9%, driven by the services and agriculture sectors, compared to 3.1 % in 2022. Headline inflation sharply dropped to 23.2 % in December 2023 from a peak of 54.1 percent at the end of December 2022.
The banking sector experienced a notable growth in its performance as the negative impact stemming from the domestic debt restructuring and macroeconomic difficulties diminished. By the close of 2023, the banking sector maintained its stability and liquidity.
Essential financial health indicators demonstrated positively, with the capital adequacy ratio below the regulatory threshold.
However, the non-performing loan ratio saw an increase in 2023, attributed to widespread repayment difficulties among borrowers due to the persistent effect of the general macroeconomic challenges.
Operational Performance
In spite of the challenging macroeconomic environment coupled with the unprecedented high inflationary rate that pertained during the reviewed year, the bank managed to pull yet another remarkable operational performance in all key financial indicators as indicated in the table.
Key highlights of the Bank’s financial performance in 2023 are summarised in the table below:
| SN | INDICATOR | 2023 | 2022 | CHANGE
(%) |
|
1 |
TOTAL INCOME |
42.749,563 | 27,410,604.00 | 55.86 |
|
2 |
OPERATING EXPENSES | 38,937,366 | 36,11,480 | 7.82 |
|
4 |
PROFIT BEFORE TAX | 3,812,197 | 8,674,764 | 143.95 |
|
5 |
TOTAL DEPOSIT | 255,024,626 | 192,401,603.00 | 32.55 |
|
6 |
INVESTMENT | 151,940, 737 | 96,593,136.00 | 57.29 |
|
7 |
LOANS / ADVANCES | 65,776,974 | 51,308,008.00 | 28.20 |
|
9 |
TOTAL ASSETS | 263,406,559 | 194,679,231.00 | 35.30 |
|
10 |
STATED CAPITAL | 3,674,917 | 2,961,946.00 | 24.07 |
Corporate Social Responsibilities
The Bank during the year under review supported institutions, communities and individuals as part of its corporate social responsibility. As a socially responsible institution, an amount of Gh¢479,181 was spent in supporting individuals and institutions in the operational territories of the Bank.
Future Outlook
The Chief Executive Officer of the Bank, Evans Sarfo-Kantanka in an interview with Business & Financial Times said the Bank would continue to put in pragmatic measures to ensure positive growth and achievement of the Strategic Plan of the Bank.
He stressed that the Bank would intensify loan recovery, embark on intensive deposit mobilization, strengthen internal controls and maintain quality assets to increase profitability.
He has also emphasised that the Bank’s business focus in 2024 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.
Mr Sarfo-Kantanka stressed the Bank would develop the human capital to meet demands of functioning profitability as well as achieving the objective of overcoming the shocks of the unfriendly macro economy and rising cost of living as well as its devastating effects.
