HFC Improves Earnings, Grows Assets

Asare Akuffo
HFC Bank Limited improved its after-tax earnings significantly for 2013 by 158 percent to GH¢39.3 million.

While growth in loans and advances increased by 56 percent, the bank’s total assets reached GH¢999 million, up 68 percent from the previous year’s figure.

Customer deposits, on the other hand, increased by 45 percent to GH¢454 million.

Asare Akuffo, Managing Director of HFC Bank Limited, who disclosed this to shareholders of the bank at its Annual General Meeting (AGM) on Thursday in Accra, said operating income also rose by 79 percent to GH¢127.8 million, including fee and commission income of GH¢25.6 million.

Operating expenses grew at a relatively lower rate of 41 percent to GH¢67.4 million.

Also, net income ration shot up to 66.1 percent to 67.2 percent.

HFC Bank established three branches and five agencies in the Western region as part of its strategy to deliver diversified financial services to the cocoa industry.

‘Our Home loan portfolio stood at GH¢115.4 million last year, representing 22.3 percent of the bank’s total loan book. Disbursement for the year 2013 amounted to GH¢19.39 million.’

HFC Investment Services Limited increased its assets under management by 75 percent from GH¢95.8 million to GH¢168.2 million on behalf of 29,403 clients.

HFC Realty recorded a marginal loss of GH¢0.040 million due to unexpected delays in delivery of housing units from its projects.

The projects are expected to deliver significant number of houses in 2014 to improve HFC Realty’s profit performance.

HFC Boafo Microfinance improved its profit performance by 28.9 percent to GH¢0.923 million with a loan portfolio of GH¢13.7 million while deposits increased by 38 percent to GH¢21.19 million.

Nana Agyei Duku, Board Chairman of the bank, in a statement, said the board had recommended a dividend of GH¢0.035 per share to shareholders, adding that that represented an increase of 25 percent over the 2012 dividend of GH¢0.028 per share.

By Samuel Boadi

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