NIB To Open 22 New Branches

The National Investment Bank (NIB) intends to open about 22 new branches with state-of-the-art equipment between now and 2017 to bring its products and services to the doorsteps of customers.

Togbe Afede XIV, Board Chairman of NIB, who disclosed this on Thursday in Accra to shareholders during the bank’s Annual General Meeting (AGM), said NIB achieved very impressive operational results for 2014.

Total operating income for the year increased by 74.01 percent to GH¢315.79 million from GH¢182.25 million in 2013.

The corresponding operating expenses increased by 76.73 percent to GH¢108.22 million from GH¢61.23 million in the previous year.

Credit impairment losses for the year reduced to GH¢16.99 million from GH¢29.92 million in 2013.

The bank intensified efforts to recover bad loans and improve credit delivery. As a result, the bank recorded a profit-after-tax for 2014 of GH¢79.39 million, an increase of 106 percent over the 2013 performance of GH¢38.52 million.

The balance sheet of the bank also continued to strengthen, as shareholders’ funds grew by 70.58 percent to GH¢486.82 million as at end of 2014 compared to GH¢285.40 million as at end of 2013. Similarly, total assets grew significantly by 94.93 percent from GH¢1,189.95 million at end of 2013 to GH¢2319.57 million at end of 2014.

Togbe Afede said the increase in NIB’s balance sheet was largely due to the 77 percent growth in deposits over the year 2013 position from GH¢759.23 million to GH¢1343.81 million at end of 2014, as well as growth in profit-after-tax and revaluation of landed properties.

‘The bank’s efforts to recover delinquent loans yielded positive results. It is our resolve to pursue and recover all bad loans.’

He stated that the capital adequacy ratio of NIB registered 21.56 percent at end of 2014, adding that that was well above the minimum BoG requirement of 10 percent.

In order to reward shareholders, a dividend of GH¢0.05 per share was declared to help record a positive balance on income surplus account.

Ernest Agbesi, Managing Director (MD) of NIB, commenting on how the general performance of the economy in 2014 impacted the banking environment, said the upsurge in inflation in 2014 which had been in the single digit for almost three years propelled Treasury Bill rates up.

This pushed interest on the 91-day T-bills closing the year at 25.81 percent whilst the 1-year note registered 23 percent.

He said the deteriorating economic conditions in 2014 caused by the shortfall in energy supply created major challenges for businesses, while foreign exchange also remained volatile.

By Samuel Boadi

More Business & Finance »

This article has 0 comment, leave your comment.