Stanbic Records Strong Growth

Alhasan Andani - MD of Stanbic Bank

Stanbic Bank Ghana Limited recorded strong growth in the first quarter of this year, exceeding its budget target by 60 percent.

Alhassan Andani, Managing Director of the bank lauded the bank's 2010 results and described its performance in the first quarter of 2011 as spectacular.

The bank, which expressed positive outlook in the Ghanaian economy, this year, said it was ready to tell the Ghanaian and African story to attract more investments into Ghana.

Mr. Andani, who briefed some senior financial journalists about the 2010 financial statement of the bank, said his outfit was diversifying its business in order to increase its support to agric financing, manufacturing, oil and gas and the economy as a whole.

'Activities of Tullow and its partners are on the increase. Oil will be a blessing and will change the economy entirely,' Mr. Andani said, adding that his outfit was looking for numerous opportunities to grow its business.

He expressed optimism that lowering interest rates will improve the overall liquidity management of the economy, thereby increasing loans and advances to existing and new customers.

The bank recorded a 14 percent increase in profit after tax from GH¢14.75 million in 2009 to GH¢19,074 million in 2010 while net interest income was also up by 39 percent from GH¢42.388 million in 2009 to GH¢59.318 million in 2010.

The balance sheet was also strong as equity increased by 55 percent to GH¢109.513 million in 2010 from GH¢86.840 million in 2009.

Deposits and current accounts also shot up by 45 percent from GH¢499.729 million to GH¢624.148 million in 2009.

On the various sector performances, the MD, who was optimistic, said the bank in the past year brought in expertise to manage its business, especially corporate and investment banking where some innovations were introduced.

For instance, the bank recently launched the Stanbic Income Fund, an opened-ended trust fund which invests primarily in fixed income securities that give high interest earnings to the investors.

The retail and agric financing business was also good as the bank, with the support of the Alliance for Green Revolution (AGRA), supported smallholder farmers to expand their businesses.

'In terms of overall assessment, the year was good as Stanbic was a major player in the Ghana Cocoa Board (COCOBOD) syndication.'

By Charles Nixon Yeboah