Shareholders of the National Investment Bank Limited (NIB) have approved the board's decision to transfer an amount of GH¢13 million from the bank's income surplus to its stated capital.
The move is to gradually raise the minimum capital to GH¢60 million by 2012 as directed by the central bank.
At the annual general meeting in Accra yesterday, the Board Chairman of the bank, Dr Charles D. Jebuni, said the bank was hoping to meet the new capital requirement by 2012 through its own internal growth strategies.
The Bank of Ghana (BoG) has given local banks in the country up to 2012 to raise their minimum capital requirement from the present Gh¢ 7 million to GH¢60 million.
“We are focusing on capitalisation of the bank through organic growth”, Dr Jebuni stated.
Giving the financial performance of the bank for the 2007 financial year, the board chairman said the total income increased by 54 per cent from Gh¢25.19 million in 2006 to Gh¢38.8 million by the end of last year.
He said profit after tax stood at GH¢5,989 million from the previous year's figure of GH¢4,427 million. Dr Jebuni said total deposits of the bank grew by 44 per cent from GH¢169.75 million in 2006 to Gh¢244.58 million at the end of December 2007.
Again, the board chairman stated that total assets grew by 23 per cent from GH¢344.26 million in 2006 to GH¢279.8 million in 2007. The board has declared a dividend of GH¢0.0374 to shareholders, representing a 50 per cent increase over the previous year's figure.
He said during the year under review, the bank undertook a number of projects, which included the expansion of its branch network. The bank, according to him also established a joint venture capital company to provide equity and debt financing to small and medium scale enterprises.
“The 2006-2008 strategic plan of the bank was reviewed and the board of your bank approved a revised organogram in order to align departments and units to the new strategic choices, which have been crafted and to sustain our competitive posture in the banking industry,” Dr Jebuni stated.
Giving the outlook, Dr Jebuni stated that the bank would strengthen its use of information, communication and technology (ICT) to ensure quality and timely service delivery.
“We will also introduce Internet and SMS banking and credit cards for more convenience banking solutions,” he stated.
The Managing Director of the Bank, Mr Daniel Charles Gyimah, said “the bank's attention will be geared towards generating more non-interest income in order to reduce the over reliance on traditional interest income”.
Story by Boahene Asamoah