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04.11.2005 Business & Finance

Management of NIB pays dividend to Government

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Accra, Nov. 4, GNA - The National Investment Bank (NIB) on Friday paid a dividend of 11.5 billion cedis to the Government. Board Chairman, Dr Charles Jebuni, who made the presentation in Accra, said the total dividend paid so far from 2002 to 2005 was 21.5 billion cedis.

He said the figure indicated an increase in performance, which was largely due to the improved operating results in 2004.

The Bank achieved this feat despite the stiff competition and reduction in earnings margins in the banking sector.

Giving figures to support its achievement, Dr Jebuni said the Bank also managed to achieve a profit before tax of 70.83 billion cedis in 2004 indicating a 67.1 per cent above the pre-tax profit of 42.39 billion cedis in 2003.

There was 54.4 percent increase in the Bank's total income moving from 138.1 billion cedis in 2003 to 213.29 billion cedis in 2004. Profit after tax increased by 56.6 per cent from 32.88 billion cedis in 2003 to 51.48 billion cedis for 2004.

Dr Jebuni said the Bank was, therefore, paying a total dividend of 13.3 billion cedis, which represented an increase of 66.7 per cent over the amount paid for 2002 and 2003.

He said the figure for total dividend translates into 250 cedis per share and promised that the Management would "ensure that the Bank stays on course to provide the necessary support to the Government and Ghanaians."

Dr Anthony Akoto Osei, Deputy Minster of Finance and Economic Planning in charge of budget, said Government raised expected inflows but could not achieve its target.

He said it was, therefore, gratifying that the Bank had paid such an amount into Government coffers to add up to whatever it raised before the budget was released this month.

Dr Akoto Osei commended the Management of the Bank for its exemplary leadership and said he was optimistic that the budget would present some surprises for the banking sector.