Muriel Susan Edusei and Asare Akuffo, Board Chair and Managing Director of HFC Bank respectively, have announced retirement from their positions effective from yesterday, April 23rd, 2015.
At the company’s annual general meeting in Accra, Mrs. Edusei — who has served on the board for three years — stated that “I have served the bank well for three consecutive years. Since 2010, I have not been in active employment so I want to finally go home and rest”.
Mr. Akuffo, who has been the MD for the past 10 years said: “While my retirement is effective from 30th June, 2015, I have decided to start my leave after the AGM”.
Their retirements come right before the bank’s imminent takeover by Trinidad and Tobago-based Republic Bank, but both executives denied the takeover is the reason behind their departures.
Executive Director Corporate Banking, Osei Asafo-Adjei — now the acting Managing Director, stated that his vision for the bank is to continue from where Mr. Akuffo left off.
“He has done a great job and we will build on that. We have a three-year strategy that has run only one year, and we will continue to roll-out the remaining two years.”
He added that the bank is expecting cooperation with its biggest shareholder, Republic Bank. “They are here as investors and we expect them to corporate with us to grow the bank. There is no wrangling anymore, and we are moving forward.”
HFC Bank and its subsidiaries posted profit after tax of GH¢57.5million in 2014, representing a 46 percent increment.
The profit after tax reflected a GH¢77.2million increment in operating income, with expenses up by 69 percent to GH¢113.7million. Impairment charge for credit losses increased by 31 percent to GH¢13.3million.
Net interest income ratio declined slightly from 67 to 66 percent due to tighter deposit spreads. Cost-to-income ratio for the year increased to 57.1 percent from 53 percent in 2013, reflecting the high-cost environment in which businesses operate.
Total assets grew by 35 percent to close at GH¢1.34billion from the previous figure of GH¢999million. Loans and advances to customers (including home loans) went up by 25 percent to reach GH¢642.8million. Gross NPL ratio deteriorated slightly from 9.3 percent to 10.4 percent in 2014.
During the year under review, corporate and SME loans increased by 19 percent to GH¢489.7million, and a new branch was opened in the Kumasi metropolis.
The bank’s home loan portfolio stood at GH¢173.6million at the year-end, representing 25 percent of the bank’s total loan book. Total disbursement for the year was GH¢26.48million from GH¢19.39million in 2013.
“Our performance was extremely good, just like in 2013; and we will continue to do that going forward,” the acting managing director, said.