HFC Bank has posted an operating loss for the second year in a row though the figure has dropped marginally.
The Bank’s 2016 financial statement showed that the loss for 2016 recorded 38.6 million cedis from the 39.2 million cedis in 2015.
The bank’s losses were also accounted for by the projects to clean the legacy debts accumulated on the bank’s loan books.
HFC bank’s provisions for the legacy debts in 2015 resulted in a loss after tax of 39.2 million cedis.
This had been preceded by a profit of 36.3 and 54.2 million cedis in 2013 and 2014 respectively.
The bank is also among those affected by the energy sector debts hence the provisions for debts in the energy sector.
For 2016, HFC Bank’s total operating income dropped by 6 percent from 183.8 million cedis to 172.8 million cedis between 2015 and 2016.
Although net interest and trading income dropped, net fee and commission income increased from 14.9 to 19.3 million cedis within the period.
The highest expenditure was allocated to software licensing and other ICT costs.
This was followed by the net impairment loss on financial asset at 69.7 million cedis.
Like his colleagues in the sector, the Managing Director of HFC Bank, Robert Le Hunte told Citi Business News he is confident the provisions made will present an improved performance this year.
However, HFC Bank managed to increase its assets by 18.4 percent; from 1.56 billion cedis to 1.85 billion cedis between 2015 and 2016.
Similarly, liabilities also increased from 1.38 billion cedis to 1.71 billion cedis.
This was also influenced by huge increase in deposits of about 33 percent following the massive deposits campaign drive embarked on by the Bank in 2016.
Shareholders were for the second consecutive time, not paid any dividends.
HFC bank’s shares on the stock market closed trading on Wednesday at 52 pesewas.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana
Published on 4 May 2017 | 6:00 am at Source