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NIB looks into the future with hope

BY: Selorm Yaw Dovia

After 12 years of keeping shareholders in suspense without any dividend, the National Investment Bank (NIB) stirred positive emotions when it paid a dividend of GH¢0.05 to its shareholders. Togbe Afede XIV, Board Chairman of the bank, announced the good news at its 46th Annual General Meeting held at the La-Palm Royal Beach Hotel a few weeks ago.

Togbe Afede, narrated a story of an impressive performance during the year 2014, which registered an after tax profit of GH¢79.39 million. This represented a 106 per cent increase over the 2013 figure of GH¢38.52 million. The balance sheet of the bank also continued to strengthen as shareholders’ fund grew by 70.58 per cent from GH¢285.40 million in 2013 to GH¢486.82 million in 2014.

As would be expected under such favourable circumstances, total assets of the bank grew by 94.93 per cent from GH¢1,189.95 million at the end of 2013 to GH¢2,319.57 million in 2014. Togbe Afede, attributed the dramatic upward swing in the bank’s balance sheet largely to the 77 per cent growth in deposits, which rose from GH¢759.23 million in 2013 to GH¢1,343 billion by the end of 2014.

Delinquent loans

Another major policy which reflected positively in the operational performance of the bank was the determination to recover delinquent loans which had so far yielded encouraging results. The bank registered a capital adequacy ratio of 21.56 per cent at the end of 2014, which was well above the minimum Bank of Ghana requirement of 10 per cent.

This strategic plan of the bank, according to the Board Chairman, gave a clear guide that would enable the bank to forge the needed partnerships to reposition it for further competitiveness and to take advantage of the improving business environment.

It will be unfair to celebrate the success of NIB, which in the immediate past was associated with bad and dubious loans, some of which have landed it in heavy debt running into millions of dollars, without recognising the quality and efforts of the new leadership at the helm of affairs.

Togbe Afede is well-known as an astute financial administrator, an experience which benefited the Board greatly in giving direction to the management of the bank under Mr Ernest Mawuli Agbesi, the Chief Executive Officer and the Managing Director.

Strategy

Commenting on the bank’s turnaround in this short time, Mr Agbesi said it was a clear indication of the board and management’s resolve to restructure and reposition NIB to be more profitable, in spite of the systemic challenges.

“Last year, at the 45th annual general meeting, we promised our commitment to ensuring a complete turnaround from 2014. This has been shown in our performance in 2014. We reiterate our resolve to continue this sterling performance in 2015 and beyond,” he said with a lot of optimism.

In an address to workers of the bank earlier in the year, during which he unveiled an ambitious three-year programme to put NIB at the forefront of the burgeoning but highly competitive banking sector, Mr Agbesi said the bank would place emphasis on improving risk management, credit delivery and monitoring, work ethics and general productivity.

More branches

He announced the opening of more branches nationwide with a view to bringing the bank’s products and services to the doorsteps of its numerous customers.

In pursuit of this objective, new branches have been opened at Asokwa, Ashaiman and Hohoe while others are to be opened soon at Mallam, Airport City, Swedru and Nkwanta in the Volta Region. Existing branches at Accra Main, Kumasi Main, Bolga, Tamale and Wa have also been remodeled and given a facelift.

Consistent with its Corporate Social Responsibility, the NIB has extended various forms of assistance to charitable organisations, public and private institutions over the past one year. These include cash and material donations to the Ghana Blood Foundation, the Yagbonwura EducatiFoundation, the Supreme Lions Club of Tema and the Legon Police.

Others are the Ghana Army, the Ghana Police Staff and Command College at Winneba and Mawuli School. The latest donation of GH¢100,000.00 was made to the National Disaster Management Organisation (NADMO), to support the June 3, 2015 fire/flood victims.

The National Investment Bank has set its sights far into the sky and in the words of Togbe Afede, “the bank is already on the trajectory of growth and increased profitability.

We have every hope that with your support and with the help of God, your bank should achieve the board’s objective of transforming it into the leading bank in Ghana much sooner than was possible”.

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