The National Investment Bank has recorded a profit of GH¢120.11 million after tax for the year 2015.
This represents an increase of 51.28% over the 2014 performance of GH¢79.39 million.
The bank recommended the payment of GH¢0.06 per share as dividend to shareholders; a 20% increase in 2014 to strengthen its balance sheet and meet the Bank of Ghana’s minimum capital requirement.
Board Chairman of the bank, Togbe Afede XIV announced this at the Annual General Meeting (AGM) of the bank in Accra.
According to him, the bank achieved an impressive operational result in 2015 with total operating income rising by 51.86% to GH¢348.83 million, from GH¢229.70 million recorded in the previous year.
He noted that the corresponding operating expenses increased by 65% to GH¢178.87 million, from GH¢108.22 million in 2014.
Credit impairment loss for the year also expanded by 43.66% to GH¢24.41 million in 2014 from GH¢16.99 million in 2015.
The balance sheet of the bank strengthened as shareholders’ funds grew by 11.57% to GH¢543.18 million, from GH¢486.82 million in 2014.
Total assets grew from 14.45% to GH¢ 2,654.69 million, from GH¢ 2,319.57 million at the end of 2014.
He pointed out that the bank’s customer deposit liabilities increased by 32.60% from GH¢1,343.81 million at the end of 2014, to GH¢1,781.93 million in 2015.
The capital adequacy ratio was 24.81% at the end of 2015, well above the minimum requirement of 10%.
He said the bank will continue to pursue its aggressive strategic plan, aimed at expanding the service delivery network in order to increase market share and maximise shareholder value.
He said plans are far advanced to improve upon the bank’s competitiveness, to position it to be able to take advantage of the expected rebound in economic activity.
Togbe Afede said the bank had opened 11 new branches in 2015 and would continue to pursue a strategic plan to expand its service delivery network to increase market share and maximise shareholder values as well as build the capacity of staff.
He said the First Ghana Savings and Loans Limited (FGSL), a subsidiary equity stake, stood at 98.98 per cent and that the FGSL recorded after tax profit of GH¢0.62 million in the year under review, compared to a loss of GH¢3.18 million in 2014.
The Managing Director, Mr Ernest Mawuli Agbesi, said the bank continues to experience stiff competition, especially with respect to deposit mobilisation, product development and service delivery channels.
He explained that the banking sector recorded high inflationary pressures and, in response, the Bank of Ghana adjusted the policy rates to 26% from 21% for the year 2014.
As a result, he noted, Treasury bill rates have remained relatively high. Interest on treasury bills for 91 days and 182 days closed the year with 22.90% and 24.45% respectively.
According to him, the bank employed every available means to bring their respective products and services to the doorsteps of customers.
Shareholders present encouraged the board to continue with their good leadership for the bank to flourish like it did in the past year.
Source: The Finder