Atwima Kwanwoma Rural Bank Doubles Share Price as Profits Surge 120%

Share Price Doubles to Reflect Strong Fundamentals

Atwima Kwanwoma Rural Bank PLC has announced a 100% increase in its share price, raising it from GH¢0.50 to GH¢1.00 per share — a move that underscores the bank’s growing financial strength and long-term shareholder value.

The new share price will be maintained for existing shareholders over the next eight months, giving investors stability and confidence amid evolving sectoral regulations.

According to management, the upward adjustment reflects the bank’s sustained growth trajectory, operational efficiency, and market confidence, even as the intrinsic value of its shares continues to exceed the current pricing.

“Given the industry in which we operate, we had to consider the general environment before adjusting the price. If not for the nature of our industry, the value would have been far higher than what we are proposing now,” said Samuel Bonsu Sekyere, Chief Executive Officer of Atwima Kwanwoma Rural Bank.

Liquidity Boost and Capital Strength

The bank expects the share price adjustment to enhance liquidity from share sales and strengthen its capital adequacy position.

With the Bank of Ghana’s minimum capital requirement for rural banks currently at GH¢1 million, Atwima Kwanwoma’s solid capitalisation places it among the most resilient institutions in the rural banking space.

“The Bank has met the indicators set by the Bank of Ghana, and we have indications that in the near future the Bank of Ghana will raise the minimum capital requirement for rural banks,” Mr. Sekyere added.

By the end of 2024, the bank’s stated capital had risen to GH¢4.97 million, up from GH¢3.93 million in 2023 — exceeding the regulatory threshold by over 300%.

Strong Financial Performance

At the 42nd Annual General Meeting, the bank reported stellar performance across key financial metrics.

• Profit before tax jumped 120.3%, reaching GH¢54.4 million in 2024 from GH¢24.7 million in 2023.

• Profit after tax more than doubled to GH¢37.6 million, compared to GH¢17.1 million in the previous year.

Reflecting this robust performance, the Bank of Ghana approved the payment of dividends for the 2024 financial year.

Board Chairman Mr. Kwame Kyei Kusi announced a 40% return on investment, equivalent to GH¢0.20 per share, with 18,429,175 ordinary shares qualifying for dividend distribution — amounting to GH¢3,685,835.00.

Deposits, Investments, and Loans Surge

The bank also recorded broad-based growth across its balance sheet:

• Total deposits increased to GH¢592.1 million, up 56.6% from GH¢378 million in 2023.

• The investment portfolio grew by 67.9%, reaching GH¢500 million.

• Loans and advances to clients rose to GH¢102 million, representing a 33.4% increase from GH¢76 million the previous year.

Management attributed the growth to improved customer confidence, efficient credit management, and strategic diversification across retail, SME, and agricultural lending portfolios.

Community Impact and Corporate Social Responsibility

In line with its commitment to community development, Atwima Kwanwoma Rural Bank invested GH¢212,000 in health, education, security, and agriculture within its operational areas in 2024.

“Our mission goes beyond profit. We believe in the transformation of the communities we serve,” Mr. Kyei Kusi noted.

The bank has also commenced construction of a modern office complex for its Old Tafo Branch to improve customer experience and reduce congestion.

“The current premises can no longer accommodate our growing customer base,” the Chairman said, adding that plans are underway to open a new branch in Suame, Greater Kumasi, to expand access to banking services.

Positioning for the Future

With strong profitability, a growing balance sheet, and strategic capital management, Atwima Kwanwoma Rural Bank is positioning itself for sustainable growth amid an increasingly competitive financial sector.

The bank’s leadership reaffirmed its commitment to innovation, digital transformation, and prudent risk management — ensuring continued value creation for shareholders and customers alike.

Source: Accra Business News