Ghana’s HFC threshold on meeting BoG’s 2012 deadline

HFC Bank is to raise an additional GH¢15million capital from new institutional investors by June 2010.This is the second phase of its recapitalisation process aimed at positioning the bank to meet the Central Bank’s GHC 60 million new capitalization ahead of 2012 deadline.

The Bank had already raised GH¢12.4 million from existing shareholders through private placement.

“The second phase of the recapitalization process is being pursued diligently to attract additional equity from new institutional investors and to enable it to invest in subsidiaries to better position them for higher earnings as well as achieve the five year strategic plan.” said, Mr Asare Akuffo, Managing Director of HFC, at the 'Facts Behind the Figures' Programme organized by the Ghana Stock Exchange, in Accra.

He disclosed that the bank has commenced the implementation of its new strategic plan over the next five year with which it seeks to become a major player in the industry.

Mr Akuffo said despite the challenging environment, the bank chalked significant success, achieving its targets under the previous five years strategic plan.

“The current economic indicators and the first quarter results points to improvements in the macroeconomics environment which should engender increase in business activity.
“The banking segment of our business will still focus on aggressive deposit mobilisation and prudent growth in the loan portfolio in response to growth and expansionary trends and indicators in the economy,” he said.

Besides, micro-finance lending operations would also be given a further boost with recapitalisation and expansion.

Mr Akuffo said branch expansion would continue to achieve representation in most commercially active centres of the country.

He said the bank would pursue cost reduction strategies and ensure aggressive cross-selling of their products to beat the competition and reward shareholders.He indicated that the bank grew its mortgage portfolio by 32.27 per cent last year, while its consumer loan portfolio experienced a decline due to increased emphasis on recovery.

Deposit level grew by more than 30 per cent over 2008 at GH¢138.73 million at the end of 2009 from GH¢106.95 million a year before.

Total Assets grew by an average of 266.9% from GH¢71.14 million in 2005 to GH¢261.10 million at end of 2009.

Mr. Akwete Akita, Executive Director of HFC Bank, making a presentation said:“The vision of the Bank is to become "a leading universal banking institution in the West African Sub-region providing world class financial service and to create wealth for its customers,”

He explained that the Bank which started its operations with one branch in 2003, has grown to have 21 fully-networked branches across the country, providing its wide array of universal banking services to customers in the Greater Accra, Ashanti, Brong Ahafo, Northern and Eastern Regions.