HFC shareholders question MD’s resignation
Some shareholders of the HFC Bank have expressed concerns about what they described as recent developments in the bank which they fear can affect the fortunes of HFC on the Ghana Stock Exchange.
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The developments include Republic Bank’s Mandatory Takeover Offer (MTO) in an attempt to own controlling interest in HFC, as well as the resignations of some directors.
The Managing Director, Mr Asare Akuffo, announced his retirement at the annual general meeting (AGM) to take effect from April 24, 2015. The Chairperson of the board, Ms Muriel Edusei, also announced her retirement at the AGM of the bank in Accra yesterday.
These announcements have not gone down well with some members of the company who believe that such developments could affect the fortunes of the listed bank. In advanced markets, such boardroom wrangling can affect the share prices, thereby diluting shareholder value.
Some questioned whether the decision of the two directors of the bank had anything to do with the Republic Bank’s attempts to acquire majority shares in HFC Bank.
A shareholder, Mr Samuel Dadzie, said he found the resignations unacceptable.
“You became board chairperson not long ago and within a short time you say you are retiring,” Mr Dadzie said.
“During the year under review series of correspondences have come up, some even appearing in the dailies about Republic Bank and HFC; these are not healthy developments. If the dust has settled then there is no reason to retire, but if you are, then there is still something unresolved,” he said.
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Mr Asare Akuffo, who turned 59 years this year, is retiring after 25 years of service to the bank.
Speaking at the AGM, he said the bank was well positioned and ready to take advantage of new opportunities in the market.
“Over the relatively short period in universal banking, HFC has emerged as one of the strongest financial institutions in the country. Your bank has made strides in terms of business growth and profitability,” he said.
HFC in 2014
In the year under review, HFC was named among seven of the 28 banks in the country classified as very strong by the Bank of Ghana.
The bank’s after tax earnings was up by 46 per cent to GH¢57.5 million, reflecting a GH¢77.2 million increase in operating income.
Expenses were up by 69 per cent to GH₵113.7 million, from GH¢67.46 million. The bank’s annual report shows that impairment charges for credit losses increased by 31 per cent to GH¢13.3 million. Gross non-performing loan ratio deteriorated slightly from 9.3 per cent to 10.4 per cent in 2014.
Total assets grew by 35 per cent to close at GH¢1.34 billion from the previous figure of GH¢999 million. Loans and advances to customers (including home loans) went up by 25 per cent to GH¢642.8 million.
Outlook for 2015
The outgoing MD said the bank would continue to maintain its quality growth and stance in the market.
He said the banking industry remained competitive and so HFC would periodically review its strategy and posture to ensure that it was ahead.
“Towards this objective, the bank has just completed an exercise of reviewing the management structure of its branches. With the completion, management will sharpen its focus on the bank’s core SME and retail banking business which has proven profitable and sustainable,” he said.
Acting MD
Meanwhile, HFC has appointed Mr Osei Asafo-Adjei, Executive Director, Corporate Banking, to act as the managing director.
Before joining the bank, he was the General Manager, Business Development at The Trust Bank (TTB). He was appointed to the board in June 2012.
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