- bags GH¢ 4million profit before tax
- shareholders get 40% returns on investment
By Seth KRAMPAH, Pakyi No2
Atwima Kwanwoma Rural Bank PLC at Pakyi No2 in the Amansie Central District of Ashanti Region has recorded as always another remarkable operational performance in the 2024 year under review.
The Bank has recorded an unprecedented profit before tax of approximately GH¢54.4 million in the 2024 year under review as against a little over GH¢ 24.7million in the previous year representing an impressive growth of 120.32%.
By this, the Board of Directors has congratulated management and staff for the remarkable approximately GH¢29.7million profit growth which translates in absolute terms and have therefore been urged to work assiduously towards increasing the Bank’s profitability to increase shareholders’ investments. Directors of the bank have also been commended for their strategic direction and decisiveness in achieving this remarkable success.
The Bank’s profit margin experienced a robust and encouraging increase, propelled by the board and management’s strategic emphasis on meticulous cost management and a deliberate shift towards high-margin products.
This impressive figure reflects not only the growth in both shareholder funds and profit before tax but also highlights the Bank’s exceptional ability to enhance these financial metrics. The Board’s strategic focus and operational excellence have allowed them to significantly outperform industry averages, demonstrating the Bank’s commitment to delivering outstanding value to their stakeholders.
Dividend Payment
In the Bank’s recognition of solid financial performance in 2024 and the Board’s commitment to delivering value to shareholders, the Board has proposed a dividend of GH¢0.20p per share for 2024 financial year representing a return of 40% on the current share price of GH¢0.50p.
In all 18,429,175 ordinary shares qualified for the dividend as at the closure of register on September 30, 2024, and this amounts to GH¢3,685,835.00. This became possible after the Bank of Ghana had given an exceptional approval to a proposal put in by the Board of Directors. The Board has therefore assured shareholders of their continuous efforts to continue to pay dividends in subsequent years.
Stated Capital and Shareholders Funds
In the 2024 year under review, the Bank’s Stated Capital grew by 26.56 % from GH¢3.9million in 2023 to approximately GH¢ 5million in 2024. Shareholders’ Funds also increased by 56.40% in 2024 from GH¢ 64.2 million to GH¢100.55million
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.
The Chairman of the Board of Directors, Kwame Kyei Kusi who announced these and more at the Bank’s 42nd Annual General Meeting of Shareholders held recently at Pakyi No2 near Kumasi in Ashanti Region.
Operational Environment
According to him, Ghana’s economy experienced an impressive resilience by exceeding expectation on despite global challenges. GDP Growth – Ghana’s economy grew at 5.7 %, exceeding expectation on and driven by strong first half growth. This growth was partially offset by a slower pace in the fourth quarter.
While the economy demonstrated resilience, challenges like the impact of the dry spell on farmers and the lingering effects of global shocks remained. The economic rebound was supported by a strong performance in the industrial sector, particularly mining and quarry. While inflation remained a concern, it showed a downward trend.
The banking sector saw some significant gains. As of December 2024, Ghana’s banking sector exhibited robust growth and resilience, marked by significant increases in total assets and sustained profitability, despite elevated credit risks.
The banking sector’s total assets expanded by 33.8%, reaching GH¢367.8 billion by the end of December 2024, up from GH¢ 274.9 billion in December 2023. This growth was primarily driven by robust deposit mobilization and other funding sources. The sector’s PAT rose to GH¢10.4 billion in 2024, representing a 26.2% increase from GH¢8.3 billion in 2023.
Also, banks’ Return on Equity [ROE] declined to 33.04% from 34.25% over the comparative period. Overall, the Banking sector performance in 2024 pointed to a gradual recovery from the challenges in 2023. The Capital Adequacy Ratio (CAR) stood at 14.0% in December 2024, up from 13.9% in December 2023.
However, credit risk remained a concern, with the Non-Performing Loans (NPL) ratio increasing to 21.8% in December 2024 from 20.6% in 2023, reflecting prominent credit risks amid economic pressures.
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 yet another remarkable operational performance in all key financial indicators as indicated in the table.
Corporate Social Responsibility
The Bank continues to provide support to various state institutions and stakeholders within its catchment areas. Some projects supported within the bank’s catchment areas during the year under review included that of the Traditional Councils, Ghana Education Service (GES), the Ghana Police Service, some government health facilities and support for Farmers’ Day Celebration among others.
For the year 2024, a total of GH¢212,232 was spent on CSR programmes for local communities. 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.
Commendation / Advice
The Managing Director of ARB Apex Bank, Alex Kwasi Awuah, congratulated the shareholders, Board, and Management of the Bank for the exceptional performance of the Bank and reminding the directors of the bank to do all that they can to maintain or improve upon the very enviable corporate image that the bank has seen over the years.
Due to the Bank’s impressive 120.32% increase in profit, the Managing Director has described the Bank as one of the most profitable rural and community banks in Ghana.
He reminded the board that the pilot phase of the Agency Banking implementation has been effectively concluded. He further encouraged rural and community banks to begin the deployment of third-party Point of Sale devices.
The Managing Director expressed his confidence that the project will serve as a significant revenue generator for rural and community banks as well as offering true convenience to their esteemed customers.
Future Outlook
The Chief Executive Officer of the Bank, Samuel Sekyere Bonsu, in an interview with Business & Financial Times, said Atwima Kwanwoma Rural Bank remains steadfast in its commitment to driving inclusive financial growth across the operational areas.
The Bank’s strategic focus according to the CEO will center on deepening digital transformation, expanding the Bank’s mobile banking and agency networks, as well as enhancing customer experience through tailored financial products.
He stressed that the Bank is investing heavily in staff capacity building and secured digitalisation to ensure their systems remain secure, agile, and responsive to the evolving needs of their clients. He mentioned that with the Bank of Ghana’s regulatory reforms and the increasing adoption of fintech solutions, they see immense opportunity to maintain Atwima Kwanwoma as a leader in rural financial innovation.
He further stressed that in the coming years, the bank would prioritise strategic partnerships with government agencies, SMEs, and community-based organizations to unlock new financing channels and promote entrepreneurship.
The post Atwima Kwanwoma Rural Bank records 120.32% growth in profit appeared first on The Business & Financial Times.
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