HFC Bank receives board’s approval to raise additional capital

Business News of Tuesday, 1 August 2017

Source: Graphic.com.gh

2017-08-01

Mr Robert Le Hunte, Managing Director of HFC

HFC Bank has received approval from its board to approach its shareholders for an additional capital injection of GH¢50 million.

The amount is to help in the effective running of the bank and also ensure that the bank meets the Bank of Ghana’s (BoG) minimum capital of GH¢120 million before the end of 2017. The bank’s capital currently stands at GH¢ 96 million.

The Managing Director of the Bank, Mr Robert Le Hunte who disclosed this at the presentation of its half year results said the bank was now awaiting approval from the yet to be constituted Board of the Securities and Exchange Commission to commence the transaction.

He said the new capital would make HFC one of the strongest in the industry and put the bank in a better position to build on its strong foundation in the housing industry and the future prospects in the oil and gas industry.

Rebranding

The Managing Director also pointed out that the bank had also received approval from its board to change the name of the bank form HFC Bank to Republic Bank Ghana in keeping with the new ownership structure.

HFC Bank became a member of the Republic Financial Holdings Limited (RFHL) in May, 2015 after a successful mandatory takeover.

The over US$ 100 million investment made by RFHL represented one of the largest investments by a Diaspora company in the country.

Mr Le Hunte said the bank would soon announce the date for the rebranding and change of name of the bank.

Provision for NPLs

The MD, touching on the performance of the bank said it had successfully made provision for up to 65 per cent of its non-performing loans (NPL).

“The bank now boasts of having one of the highest cover ratio which is provision to non-performing loans of over 65 per cent, which provides the Bank with protection against future shocks going forward,” he stated.

He said after two years of losses and GH¢150 million in provision, the bank returned to profitability producing the best first half year results in the history of its 27 years of existence.

The bank was also able to grow its deposits from GH? 1.32 billion in first half of 2016 to GH? 1.58 billion in the first half of 2017, representing an increase of 19 per cent.

He attributed these good results to the hard work of the staff and the bank’s focus on recoveries over the past two years.

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