HFC bank profit dips in 2009

By Kofi Ahovi
HFC Bank Limited recorded a marginal drop of 3.80% in its profit after tax of GH₵5.849 million during the 2009 fiscal year compared to GH₵6.08 million in 2008.

This, the Board Chairman, Nana Agyei Doku, at the Bank’s Annual General Meeting (AGM), explained that it was due to an increased in the cost of funding and continuous expansion of branch network.

However, its loans and advances stood at GH₵157.5 million, a growth of
11.29%. Deposits also increased by 37.96% from GH₵85.2 million in the previous year to GH₵177.6 million in 2009.

The HFC group interest income also rose by 37.9% to GH₵49.2 million from GH₵35.7 million in the previous year.

Based on its achievement for the 2009 fiscal year, the bank paid a divided of GH₵0.015 compared to GH₵0.01 the previous year.

The bank’s mortgage portfolio grew by 32.3% from GH₵37.9 million in 2008 to GHc50.1 million in 2009.

The consumer loans portfolio decreased from GH₵17 million in 2008 to GH₵10.2 million in 2009. Also the Public Sector Affordable Housing Scheme managed by the bank achieved a gross portfolio of GH₵4.44 million, providing 172 new homes to public servants.

HFC’s lending to corporate institutions and SMEs stood at GH₵103.4 million, an increase of 13.10%.

On the bank’s subsidiaries, HFC Investment Services Limited’s managed funds contributed GH₵ 220,736 to the group’s earnings for the year under review, while HFC Realty’s contribution was GH₵103,603 for the same year.

Shareholders fund increased to GH₵32million in 2009 from GH₵27.5 million in 2008.
According to the MD, Asare Akuffo, The bank managed to achieved significant strides of it’s objectives for 2009 which included branch network expansion, improved loan administration and recovery and recapitalization.

In the year under review, four new branches and five Automatic Teller Machines (ATMs) were added to the bank’s network. The bank is now represented in all but three of the 10 regions of Ghana.

In a related development, the bank cut a sod for the commencement of the construction of a six classroom block and offices at Kotobabi 2 basic school in Batsonaa in Accra.

Cutting the sod, Asare Akuffo, recounted that the area was one of the first vicinities that the bank started its real estate investments, “this motivated as to contribute to education infrastructure in this community”.

He added that, the bank was committed to its corporate social responsibility, adding the bank has undertaken similar exercises in Ashanti Akyim in the Ashanti Region and Krobo Adumasi in the Eastern region.

The assistant metro director for the Tema Metropolitan Assembly, Philomena Baltes, commended the bank for the initiative to rebuild one of the deprived schools in the metropolis.

She however, requested the bank to also sponsor needed but brilliant students in the metropolis to senior high level.

The head mistress of the school, Gifty Mawusi, expressed appreciation to HFC for the gesture, adding the facility will have a great impact in improving education in the school.