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HFC Bank makes 47 million cedi loss in 2016

By Michael Abayateye
Robert Le Hunte

The Managing Director of HFC Bank Ghana Limited says the institution will continue a restructuring exercise, despite recording substantial losses in the 2016 financial year.

Speaking at the bank’s annual general meeting (AGM) in Accra, Robert Le Hunte HFC revealed the bank has for the past two years made a cumulative loss of GHC83 million. GHC47 million in 2016 and GHC36 million in 2015.

This is a departure from its fortunes in 2013 and 2014 when it made profits of GHC39 million and GHC57 million respectively.

An on-going restructuring exercises and a number of initiatives geared towards stabilizing and making the bank profitable, were among factors accounting for a loss in 2016

The restructuring according to Mr Le Hunt is based on four pillars; Customer Satisfaction, Employee Engagement, Building Communities and Shareholder Values. 

As part of the exercise, capital expenditure was made towards improving core technological infrastructure and the construction of a state of the art, Data centre.

He is positive the completion of the restructuring exercise would return the bank to profitability in the 2017 financial year.

"We expect the full benefit of the capital expenditure made in both technology infrastructure and branch refurbishment this year”.

New Board Chairman, Charles Zwennes, said, in spite of the losses, HFC Ghana and its subsidiaries recorded an 18% rise in assets from GHC1.6 billion to GHC1.89 billion. Deposits also increased by 31%, outperforming the industry average of 25%.

The Board of Directors recommended no dividend payment until a time when financial institution can fully cover dividend payments from profit after tax.

He assured shareholders that, the Board has put in place measures to quickly return the Bank to profitability in the shortest possible time, adding "our performance outlook for our banking enterprise in 2017 remains positive as we continue to focus on building a solid balance sheet, controlling costs, improving recovery efforts and streamlining systems and procedures”.