Mumuadu Rural Bank posts remarkable growth in all indicators  

• records 215% growth in profit before tax
• shareholders get 15% returns on current GH¢30p share price

By Seth KRAMPAH, Osino

Mumuadu Rural Bank PLC at Osino in the Fanteakwa South District of the Eastern Region has held its 36th Annual General Meeting of shareholders and posted impressive growth in all financial indicators for the year 2024 under review.

The Bank has recorded an unprecedented Profit before Tax of approximately GH¢7.1 million in the 2024 year under review as against a little over GH¢ 2.2 million in the previous year representing a remarkable growth of 215%.

By this, the Board of Directors has congratulated management and staff on the remarkable profit growth and have therefore been urged to work assiduously towards increasing the Bank’s profitability to increase shareholders’ investments.

Dividend Payment

The Board of Directors has proposed a total dividend payment equal to 40% of profit after tax totaling GH¢ 1,524,330.80 which translates to a dividend-per-share of GH¢ 0.0456. This gives a return on a dividend of 15% on the Bank’s current Share Price of GH¢ 0.30p which Bank of Ghana has given its exceptional approval to pay the proposed dividend to shareholders.

It is the hope of the Board of Directors that the Bank’s performance will continue to improve and move towards such a positive direction to enable the continuous payment of Dividend in the years ahead.

Stated Capital and Shareholders Funds

In the period of 2023 and 2024 financial years, the Bank’s Stated Capital stayed at. GH¢ 4,041,925. However, there is an amount of GH¢1,318,587, representing share purchases that are yet to be registered with the Office of Registrar of Companies.

The Bank, in spite of this satisfactory growth in share capital, is strategizing to sign on new shareholders, and also have existing shareholders invest more into the Stated Capital of the Bank. This will enable the growth of the Bank to be accelerated and ensure that the Bank is able to expand its operations and enhance its profitability to the benefit of its cherished shareholders.

Shareholders’ funds appreciated from GH¢13,393,069 in 2023 to GH¢18,097,922 in 2024 which represents an increase of 35.13% from the previous year.

Chairman of the Board of Directors, Kofi Adu Agyarko announced these and more at the Bank’s 36th AGM of shareholders held recently at the Presbyterian Church auditorium at Osino in the Eastern Region.

Operational Environment

According to him, the year 2024 witnessed a sustained momentum in global economic growth. Global inflation had a continued downward trend throughout 2024, and most central banks moved closer to their targets. The Central Bank kept the Monetary Policy at 27% as at December 2024 from 30% at the beginning of the year.

On the domestic front, economic activity was stronger, with higher-than-projected growth in the first three quarters of 2024. At the beginning of the year, inflation rose from 23.2% in December 2023 to 25.8% in March 2024. Thereafter, it declined steadily to 20.4% in August, but rose to 23.8% in December 2024, primarily due to food price increases.

Operational Performance

In spite of the challenging macroeconomic environment coupled with the high inflationary rate that pertained during the reviewed year, the bank managed to pull remarkable operational performance in all key financial indicators as indicated in the table.

PERFORMANCE INDICATOR	2024 GH¢	2023 GH¢	2021 GH¢
Total Income	59,120,925	39,872,694	28,655,633
Total Expense	52,009,389	37,618,907	23,884,186
Profit (Loss) Before Tax	7,111,536	2,253,787	4,777,279
Corporate Tax	3,300,709	1,303,939	1,235,817
Profit (Loss) After Tax	3,810,827	949,848	3,541,462
Deposits	247,861,341	143,755 ,867	101,896,826
Loan And Advances	83,162,719	66,529,258	57,674,173
Investment	140,474,774	55,599,876	43,585,913
Total Asset	276,220,911	163,783,621	124,226,695
Stated Capital	4,041,925	4,041,925	4,041,925
Deposit For Shares	1,318,587	424,561	70,648
Equity	18,097,922	13,393,069	14,582,481
Retained Earnings	6,564,681	3,304,819	5,152,117

Corporate Social Responsibility

The Bank spent a total of GH¢116,027 on various social intervention activities during the year under review. This represents an increase of 11.07% over the previous year’s figure of GH¢ 104,460. The Bank shall continue to undertake social interventions within its catchment areas, and beyond which shall be done in the areas of education, health, and security.

The Board Chairman stressed that the bank is socially responsible and would continue to support projects and engage in environmentally friendly activities in the years ahead.

Challenges

While the Bank celebrated its financial successes, it raised concern about rising credit risks and environmental threats, particularly from illegal mining (galamsey). The Chairman noted that the activities are destroying arable lands and water bodies, threatening the livelihoods of cocoa farmers and agribusiness clients—two key segments of the bank’s loan portfolio.

“We call on the President and other key stakeholders as well as Nananom to, as a matter of urgency, take steps to help rescue our water bodies and arable lands,” he said.

The Board Chairman assured shareholders of the Bank’s strategic focus on digital transformation, disciplined execution, and strong risk governance.

Future Outlook

The Chief Executive Officer of the Bank, Francis Mawunyo Kotoko in an interview with the Business & Financial Times, said the Bank would continue its good services and develop need-based products for its customers.

He stressed that the bank’s business focus in 2025 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.

He has also emphasized that the bank would follow stringent cost-reduction policies, strengthen internal control measures and develop the human capital to meet demands of functioning profitability, as well as achieving the objective of overcoming shocks from the unfriendly macroeconomy and rising cost of living with their devastating effects.

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