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14.04.2008 Business & Finance

HFC`s 2007 resultsImpressive performance

By Accra Mail
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HFC Bank has registered an impressive performance representing its operations in 2007.

In pursuit of its five-year strategic plan and in line with prudent banking, the bank's interest income in the year, increased from GH¢12.7 million in 2006 to GH¢23.7 million in 2007, signifying a rise by 86.9%.

Profit after tax for 2007 was up 153.75% to GH¢3.251 million, from GH¢ 1.281 million the previous year while continuous expansion of their branch network resulted in increased customer deposits by 50.6% to GH¢83.6 million from GH¢55.5 million last financial year.

The Board Chairman, Nana Agyei Duku who disclosed these at the bank's Annual General Meeting in Accra last week said HFC Bank will remain focused on the implementation of the five-year strategic plan to enhance organic growth, expand the bank's investments and foster stronger strategic alliances on both the domestic and international markets.

Shareholders authorized the directors to approve a share option scheme for employees of the company. This is to motivate more commitment in the workers in the face of stiff competition in the banking industry today.

HFC Bank also proposed a dividend of GH¢0.01 per share for the financial year under review. This marks an 81.8 per cent increase over the 2006 figure. The total dividend payment represents a payout ratio of 70% of profit available for distribution.

On the Bank's social responsibility to the nation, Nana Agyei Duku announced that HFC contributed GH¢ 25,000 last year to the construction of a classroom block in Kramokrom, a rural community in the Ashanti Region, in support of the 5 0th anniversary celebrations of Ghana.

Other donations totaling GH¢15,000 were channeled to 10 different institutions including the Ghana Heart Foundation, Dworwulu Special School for the Mentally Retarded, Helpage Ghana and the Organization for Sickle Cell Anaemia Relief.

Barring any unanticipated economic upheavals, Nana Agyei Duku was optimistic, that the economy would remain buoyant with increased capital injection from external funds raised from the international capital market and channeled into infrastructure development.

He said the initiatives proposed by the Bank of Ghana to transform the banking industry were expected to dominate the industry this year. “Your bank will embark on automation processes to streamline its operations and fully integrate into the national switch system”, he said, adding that “the impending Rights Issue of the bank this month will be partly used to facilitate the automation of the bank”.

Source: NFC Bank

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