NIB pays dividend; First time in 12 years
The National Investment Bank (NIB) has for the first time in 12 years, paid a dividend of GH¢0.05 to its shareholders.
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That followed an impressive profit after tax of GH¢79.39 million the bank recorded for the year 2014.
This represents 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’ funds grew by 70.58 per cent to GH¢486.82 as of the end of 204 compared to GH¢285.40 million as of the end of 2013.
Similarly, 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.
Speaking at the annual general meeting (AGM) of the bank, the board chairman of the bank, Togbe Afede XIV said, “the directors have considered the financial performance of the bank in 2014 vis-à-vis the conflicting desires of strengthening NIB’s balance sheet and rewarding shareholders.”
“We, therefore, propose the payment of a dividend of GH¢0.05 per share in order to have a positive balance on the income surplus account in accordance with statutory requirements and best practice,” he said.
Bank’s balance sheet
He explained that the upswing in the bank’s balance sheet size was largely due to the 77 per cent growth in deposits over the year-end 2013 position from GH¢759.23 million to GH¢1,343.81 at year-end 2014, as well as growth in profit after tax and re-evaluation of landed properties.
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“The bank’s efforts to recover delinquent loans yielding positive results. It is our resolve to pursue and recover all bad loans. The capital adequacy ratio of the bank registered 21.56 per cent at the end of 2014. This was well above the minimum Bank of Ghana requirement of 10 per cent,” he pointed out with satisfaction.
Strategic plan
The strategic plan, he said, gave a clear guide that would enable the bank to forge the needed strategic partnerships to reposition it for further competitiveness and to take advantage of the improving business environment.
The Managing Director of the bank, Mr Ernest Mawuli Agbesi, said the bank’s performance was a clear indication of the board and management’s resolve to restructure and reposition it to be more profitable in spite of the systemic difficulties.
“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 measured optimism.
In that regard, he said, the bank was laying emphasis on improving its risk management, credit delivery and monitoring work ethics as well as general productivity.
He announced that plans were far advanced for the opening of 22 more branches of the bank between 2015 and 2017, across the country with a view of bringing the bank’s products and services to the doorsteps of its distinguished customers.