Kumawuman holds 30th AGM
Despite its relatively strong performance last year, the Domestic Debt Exchange Programme (DDEP) launched by the government late last year has had an impact on the financial performance of Kumawuman Rural Bank PLC.
For its financial year ending 2022, the bank lost a profit of close to nine million Ghana Cedis as a result of its participation in the DDEP.
In a speech read on his behalf by the Vice Chairman of the Board of Directors, Dr K. Addai-Mensah, at the 30th annual general meeting of the bank, the Board Chairman of Kumawuman Rural Bank PLC, Dr Alex Adomako-Mensah, said the bank recorded a profit before tax of GH₵1.9 million for the year ending 2022 as against GHC1.81 million in 2021.
“However, due to the DDEP, a statutory impairment of GH₵10 million was incurred, leading to a technical loss of about eight (8) million Ghana cedis,” he said.
He said the loss was “attributable to a GH₵10,399,781.00 impairment loss on investment in government securities following the bank's participation of the DDEP.”
That notwithstanding, he said, “Kumawuman Rural Bank PLC remains a viable business and has significant potential for further growth and value creation for its shareholders.”
In the year under review, he said the bank grew its deposits from GH₵147,918,763.00 in the year 2021 to GH₵192,401,603.00 in the year 2022, representing 30.7 per cent growth.
“The high growth of the deposits shows the confidence the general public and our cherished customers reposed in the Bank,” he stated.
Dr Adomako-Mensah, who is also the Member of Parliament for Sekyere Afram Plains, said the board and management were resolute to continue to formulate strategic policies and plans to improve deposit mobilisation while minimising the corresponding market risk associated.
He said the share capital of the Bank grew marginally from GH₵2,943,052.00 as of the year 2021 to GH₵2,961,946.00, representing a 0.64 per cent growth.
As part of measures to address the impact of the DDEP on the bank, he said the board and management have developed a robust and comprehensive capital restoration plan to rebuild its capital through a combination of raising additional equity capital, internal capital generation through retention of profit and raising subordinated debt.
“We seek to raise an additional capital of GH₵5.1million within three years to meet regulatory capital adequacy ratio requirements, enhance business dealing capacity and take advantage of opportunities available to the bank while preserving our core strengths.
“Nananom, distinguished shareholders, our Bank needs injection of capital and we, once again, call on you to raise an additional capital of GH₵5.1million in that regard,” he appealed.
In the year under review, he said the bank spent a total of GH₵240,637.00 on its Corporate Social Responsibilities (CSR) through the provision of support in cash and kind to communities in its operational areas.
The bank promised to continue to extend a helping hand to communities surrounding it to make life more bearable for them.