Kaaseman Community Bank PLC plans to strengthen its capital base through bonus shares, dividend reinvestment and other measures as it prepares to meet a new minimum capital requirement for community banks in Ghana.
The bank’s board has proposed using a GH¢505,232 dividend to purchase additional shares for shareholders, subject to approval from the Bank of Ghana. It also plans to transfer GH¢4 million from retained earnings to stated capital through the issuance of bonus shares, while converting GH¢750,000 in unclaimed dividends into shares.
The measures are aimed at helping Kaaseman meet the central bank’s new minimum capital requirement of GH¢5 million for community banks by Dec. 31, 2026.
Addressing the bank’s 38th annual general meeting in Sefwi Kaase in the Western North Region, Board Chairman, Dr. Amos Apraku, said the lender is also targeting GH¢10 million in capital to qualify for Urban Community Bank status.
Kaaseman’s stated capital rose 9.16% to GH¢3.28 million in 2025, while reserves increased 19.89% to GH¢15.01 million. Shareholders’ funds climbed 17.82% to GH¢18.29 million from GH¢15.52 million a year earlier.
The bank posted strong growth in deposits, assets and lending last year, even as higher impairment charges weighed on profitability.
Total deposits increased 31.98% to GH¢212.20 million from GH¢160.79 million in 2024, while total assets rose 28.80% to GH¢243.02 million from GH¢188.68 million.
The loan portfolio expanded 23.79% to GH¢63.24 million from GH¢51.09 million, with lending spanning salaried workers, traders, micro-credit clients, agriculture, transport and cottage industries.
Cocoa-related lending performed particularly well, with the bank recovering almost 94% of loans extended to the sector, contrasting with high agricultural-loan default rates recorded by many financial institutions in Ghana.
Profit before tax fell to GH¢6.73 million from GH¢8.17 million, mainly because the bank booked GH¢4.92 million in impairment provisions on non-performing loans and advances.
Dr. Apraku said the results came against a more favorable macroeconomic backdrop, with falling interest rates and inflation supporting broader economic conditions. Ghana’s policy rate declined to 18% at the end of 2025 from 27% a year earlier, while inflation fell to 5.4% from 23.8%.
Lower interest rates, however, reduced returns on the bank’s traditional investment portfolio. Holdings of short-term government Treasury securities declined 11.17% to GH¢90.34 million from GH¢102.14 million, prompting Kaaseman to diversify its investments.
The bank also spent GH¢115,000 on corporate social responsibility initiatives in 2025. Its support included 40 bags of cement for bridge construction in Kaase, assistance to St. John of God Clinic at Sefwi Oseikojokrom, football equipment for Yawmatwa D/A Junior High School and support for local offices of the Ghana National Fire Service and Ghana Police Service.
Kaaseman also provided support to traditional councils and district and municipal assemblies during local festivals and Farmers Day celebrations, while giving financial assistance to eight needy but academically strong students pursuing tertiary education.
