HFC Bank confident of growth, profitability

Accra , May 2, GNA - HFC Bank says it is confident about a return to profitability this year, buoyed by its new suite of seven exciting deposit products launched onto the market in January.

The bank also hopes to drive growth on the back of good customer service, a new performance-driven culture, improved engagement with staff.

The new range of products include; HFC cradle to golden age account; HFC brainy child account; HFC smart save account; HFC susu plus account; HFC home save account; HFC I do account as well as HFC 55 plus account.

Professor Joshua Alabi, Board Chairman of HFC Bank, told the bank's shareholders at the 25th annual general meeting held in Accra that 2015 was a difficult year for all the banks operating in the country.

He said while many achievements took place during the period under review, the bank faced challenges as reflected in the loss of GH¢32 million.

However, the bank's savings and deposits increased by 37 per cent from GH¢178 million in 2014 to GH¢ 243 million in 2015 while its assets base grew by 19 per cent from GH¢1.3 billion to GH¢1.6 billion in 2015.

Its operating income also increased to GH¢205 million during the same year while net interest income increased by 7.5 per cent to GH¢133 million from GH¢124 million recorded in 2014.

'Let me assure you that, consistent with the bank's value of continuously delivering added value to our shareholders, your bank will work hard at providing a satisfactory return in 2016 and beyond. We have set ambitious targets for ourselves and are confident that with your support, our goals will be achieved,' he said.

He said efforts were being made to develop a new performance-driven culture within the bank whilst also focusing and improving on engagement levels with employees to drive enhanced results for the bank.

Mr. Robert Le Hunte, the Managing Director, HFC Bank assured shareholders of a bright future and outlined the measures put in place to improve the bank's performance this year and beyond.

The measures include a 3-year strategic plan dubbed '3-In-3', with the objective of becoming a 1st Tier bank in the next 3 years.

He said the 3-year strategy would focus on five pillars which are deposit mobilization, asset creation, improving recoveries, costs management and revitalizing the culture in HFC Bank to create good value to shareholders.

The new direction for the bank he said was to leverage on the infrastructure and strong mortgage base to generate additional income and also deepen HFC Bank presence in Retail, corporate and Commercial and SME Banking while building on the experience of Republic Bank.

The Board did not recommend any dividend for shareholders.

The shareholders passed 18 special resolutions at the AGM aimed at strengthening the corporate governance of the bank.

The AGM is the first to be held after Republic Bank Limited became the majority shareholder in HFC Bank in May 2015 with 57.11 per cent equity stake.

GNA