NPLs erode HFC Bank’s 2016 profits                           

HFC bank’s 2016 figures show that the bank’s total deposit grew by 31%.

The figure increased from 1.18 billion cedis in 2015 to 1.55 billion cedis in 2016.

This also outperformed the industry’s average of 25%.

The bank’s assets also increased to 1.89 billion cedis within the twelve months period.

However, provisioning for Non Performing loans left the bank with a loss of 47.73 million cedis.

Managing Director of HFC bank, Robert Le Hunte explains to Citi Business News he is hopeful of an improved performance this year.

“As I stated we are building a bank, we are restructuring and we are retooling a bank so I might not be happy with the financial results, which is one aspect of the bank but there are a lot of activities in the rebilling and the retooling exercise on which I am extremely excited with.”

The bank stated that the loss position was driven by one-off expenses, changes in Mortgage NPL policy and Bulk Oil Distributors (BDCs) portfolio.

HFC not bothered by high NPL

Le Hunte further stated that the bank is expecting a stable Non Performing loans records in the subsequent months.

NPL’s went up to 175 million Ghana cedis for the first two months of the year according to the Bank of Ghana.

Although he believes the dynamic nature of the economy affects the NPL’s he stated that he is hopeful it will not see any hikes soon.

“We are reporting NPL’s in our books about 21% and it has been around that level. We have accessed our portfolio and we feel that we have most of our NPL’s covered. You know banking is a dynamic thing and it depends a lot on the performance of the economy. So as much as we have a crystal ball, we have looked at our portfolio and I don’t think there should be any big spikes to our non performing loans portfolio.”

By: Jessica Ayorkor Aryee/

Published on 29 April 2017 | 10:00 am at Source