National Investment Bank's profit increases by 51.28 per cent
By Audrey Dekalu and Kodjo Adams, GNA
Accra, June 3, GNA - The National Investment Bank's profit after tax for the year 2015 grew from GHâ‚µ 79.39 million in 2014 to GHâ‚µ120.11 million, representing an increase of 51.28 per cent, Togbe Afede XIV, the Board Chairman of the Bank, said.
The bank's total operating income increased by 51.86 per cent to GHâ‚µ 348.83 million in 2015 from GHâ‚µ229.7 million in 2014 while operating expenses increased by 65 per cent to GHâ‚µ 178.87 million from GHâ‚µ 108.22 million.
Credit impairment losses for the year increased by 43.66 per cent to GHâ‚µ24.41 million from GHâ‚µ 16.99 million in 2014.
The bank recommended the payment of GHâ‚µ0.06 per share as dividend to shareholders; a 20 per cent increase in 2014 to strengthen its balance sheet and meet the Bank of Ghana's minimum capital requirement.
Speaking at the bank's 47th Annual General Meeting in Accra, Togbe Afede said total assets of the banking sector grew by 23.2 per cent to GHâ‚µ 63.38 billion as at the end of December 2015 compared with the 42.2 per cent growth recorded in 2014.
He said the bank's Balance Sheet continued to strengthen as stakeholders funds grew by 11.57 per cent to GHâ‚µ 543.18 million from GH 486.82 million as at the end of 2014.
Togbe Afede said domestic assets component of total assets increased by 24.3 per cent to GHâ‚µ58.07 billion at the end of December 2015 compared with the 39.9 per cent growth recorded in 2014.
He said the banking sector maintained its competitiveness in service delivery, product innovation and customer deposit mobilisation through cutting-edge information technology and that the Bank of Ghana's policy rate stood at 26 per cent at the end of 2015 up from 21 per cent at the end of 2014.
Togbe Afede said the economy experienced a marginal recovery though lower than expected in 2015 due to deteriorating commodity prices of gold and oil, energy supply shortfalls, exchange rate volatility and inadequate access to credit and markets.
He said the cedi, following the issuance of Eurobond and cocoa syndicated loans, enjoyed some stability losing 18 per cent of its value against the dollar in 2015.
He said the bank, as part of its corporate social responsibility, supported the National Disaster Management Organisation with relief items to victims of the June 3 flood and fire disaster, supported the National Youth Authority's plantain project at Mampong as well as the Ghana Armed Forces and the Retired Footballers Association.
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 GHâ‚µ0.62 million in the year under review compared to a loss of GHâ‚µ 3.18 million in 2014.