HFC posts GH¢52.1m pre-tax profits; shareholders to decide Republic Bank takeover

HFC has posted a profit before tax of GH¢52, 058, 777 in 2013, representing a 176.7 percent increase over the 2012 figures.

Operating income of the bank also stood at GH¢127.8 million representing a 79% rise.

Also, Cost to Income ratio for 2013 improved to 53% as against 67% recorded in 2012, while earnings per share increased to 13.27 Ghana pesewas from 7.90 Ghana pesewas in 2012.

These figures were presented at the bank’s Annual General Meeting (AGM) held at the Novotel Hotel in Accra on Thursday April 24, 2014.

Managing Director of HFC, Asare Akuffo announced at the AGM that despite moves by majority shareholders Republic Bank of Trinidad and Tobago to acquire the bank, the bank’s board is not in full full support of the move..

He explained that management of the bank would prefer a Ghanaian-dominated ownership of the bank.

“The board’s advice as we speak is that we keep the bank’s majority (shareholding) Ghanaian-controlled.  But it is for the shareholders to decide”, he said.

Republic Bank of Trinidad and Tobago, which owns 40% of HFC Bank, is making a strong bid to acquire the Ghanaian bank, which  has played a significantly role in the development of the mortgage industry in the country.

Acknowledging the expertise and experience of Republic Bank, he stressed that although the HFC Board of Directors would not push for a Republic Bank takeover, “the company belongs to (the) shareholders and they take final decisions in these matters.”

He said HFC will soon issue an official position on Republic Bank’s move after advice from  the bank’s lawyers.

Other highlights
The bank’s home loan portfolio stood at GH¢115.4 million at the end of 2013 representing 22.3% of the total loans.

Disbursement for 2013 stood at GH¢19.39 million for 236 loans. This comprised GH¢13.57 million worth of foreign currency and GH¢5.82 million Cedi loans.

An average of loans approved for the year under review was $68,586 and GH¢37,340 for foreign currency and local currency loans respectively.

Meanwhile shareholders at the AGM on Thursday approved a dividend of 3.5 pesewas per share, representing  a 25% increase on 2012’s 2.8 pesewas per share. Story by Ghana | Myjoyonline.com | George Nyavor | [email protected]

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