Kwaebibirem Rural Bank posts impressive growth in all financial indicators

• bags approximately GH¢10.9 million profit before tax
• shareholders get 16% returns on current GH¢1p share price

Kwaebibirem Rural Bank PLC at Asuom in the Eastern Region has posted impressive growth in the 2024 year under review achieving significant growth across key operational indicators.

The Bank recorded profit before tax of approximately GH¢10.9 million in the year under review as against a little over GH¢4.1million in the previous year, representing 164.34 % impressive growth.

The rise in profit has been attributed to improved revenues generated from operations and prudent management of recurrent expenditures both on the part of the Board, Management and the entire Staff.

By this, the Board of Directors has congratulated management and staff for the remarkable GH¢6.8 million 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.

Dividend Payment

The Board of Directors has proposed a total Dividend payment of GH¢1,462,367. This translates to a dividend-per-share of GH¢0.016p which gives a return of 16% on the Bank’s current share price of GH¢0.1p which the regulator 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 2024 year under review, the Bank’s Stated Capital grew by 3.89% from GH¢1.69 million in 2023 to a little over GH¢1.76 million in 2024. Shareholders’ Funds also increased by 102.16 % in 2024 from about GH¢7.1million in 2023 to approximately GH¢14.4million. The increase resulted from unprecedented profit achieved and rigorous sales of ordinary shares.

The Bank in spite of the growth in share capital is strategising to sign up 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 cherished shareholders.

The Chairman of the Board of Directors, Carlos Kingsley Ahenkorah announced these and more at the Bank’s 38th Annual General Meeting of shareholders held last Friday at the Presbyterian Church Auditorium at Asuom, in the Eastern Region.

Operational Environment

According to him, Ghana has experienced different leadership under the NDC and NPP governments since 2014. Concurrently, the global economy has been tested by multiple crises, from the Ebola outbreak, the COVID-19 pandemic, to the ongoing Russia–Ukraine war.

These challenges had far-reaching effects on Ghana’s economy, leading to instability in treasury bill interest rates and exchange rate fluctuations.  Yet, in spite of these adverse conditions, the Bank has not only survived but has emerged stronger.  He has further reiterated that all key performance indicators show that the Bank is on a sustainable and upward growth trajectory.

In the 2024 year under review, Ghana’s rural and community banks (RCBs) played a pivotal role in bolstering the nation’s economy, particularly in advancing financial inclusion and providing credit to the Small and Medium-sized Enterprises (SMEs) sector.

Amidst the macroeconomic challenges, these banks demonstrated resilience and innovation, significantly impacting local economies and underserved communities.

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

INDICATOR	2024 GH¢	2023 GH¢	CHANGE          %
Total Deposit	119,973,265	61,947,740	93.67%
Investment	94,979,373	47,814,759	98.64%
Loans & Advances	23,065,191	17,379,597	32.71%
Share Capital	1,760,190	1,694,259	3.89%
Profit Before Tax	10,914,262	4,128,799	164.34%
Total Assets	138,131,465	75,949,969	81.87%
Shareholders Fund	14,367,432	7,107,047	102.16%
Total Dividend pay out	1,462,367	793,066	84.39%

 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 those of the Traditional Councils, education, the security service, some government health facilities among others. For the year 2024, a total of GH¢69,393 was spent on CSR programmes for local communities.

Outlook

The Chief Executive Officer of the Bank, Prince Obiri Yeboah, in an interview explained that the bank’s recent performance was the result of resilience among staff, loyalty from customers, and prudent strategies adopted by the Board.

He noted that moving from a period of losses to recording growth across all financial indicators was no small achievement but cautioned that sustaining this trajectory would require discipline. According to him, the bank intended to strengthen internal controls, improve risk management practices, and ensure that every cedi mobilised was put to productive use, emphasising that efficiency and accountability would remain the bedrock of operations.

He further indicated that deepening relationships with customers and communities was critical to sustaining growth.

He stressed that rural banking thrived on trust and proximity, and therefore the bank would expand financial literacy programs, encourage savings, and support small businesses with tailored credit facilities.

He added that by leveraging digital platforms, the bank could make services more accessible and convenient, particularly for the youth and informal sector operators. This, he said, would help grow the deposit base while diversifying the loan portfolio to reduce concentration risks.

The CEO also pointed out that investment in people and innovation would be central to the bank’s future. He explained that staff training, performance incentives, and a culture of service excellence would keep the team motivated and customer focused.

At the same time, he said the adoption of technology-driven solutions such as mobile banking, cashless transactions would enable the bank to anticipate market trends and respond swiftly.

He concluded that if the bank remained disciplined, customer-centric, and innovative, Kwaebibirem Rural Bank would not only sustain its current growth but also position itself as a model of rural banking excellence in Ghana.

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