HFC Bank to form holding company

The Board of HFC Bank has approved the establishment of a holding company to acquire the bank’s subsidiaries and to eliminate the risks that they (subsidiaries) pose to its capital, Managing Director, Asare Akuffo has said.

“We believe that this structure will position the subsidiaries to deliver more value to shareholders,” Mr Akuffo said in a statement to shareholders at the Annual General Meeting of the bank held on Thursday.

He said the holding company would also free the subsidiaries from the limitations of the strict banking regulations, especially in relation to capital.

The move is, however, subject to shareholders’ approval later this year.

Mr Akuffo said the bank was positioning itself to be a leading retail and SME focused financial institution and was training staff to efficiently service the financial needs of the large SME market.

The Bank is also looking at participating in financing of the oil and gas industry, infrastructural and residential real estate projects as well as cocoa.

Mr Akuffo said the subsidiaries would continue to grow their businesses in 2013, adding that the new three tier pension scheme and the demand for affordable housing provided opportunities for the growth of HFC Investment Services and HFC Realty.

“The Bank will continue to maintain its quality growth stance in the market to ensure that assets and earnings growth remain steady and sustainable,” he said.

Nana Agyei Duku, Chairman of the Bank, said net profit grew by 42.1 percent to GH¢15.42 million while the net interest Income was up to GH¢45.46 million from GH¢39.74 million.

The bank’s total assets amounted to GH¢594.9 million while customer deposit increased by 35.6 percent to GH¢312.38 million up from last year’s figure of GH¢230.30 million.

Shareholders approved a dividend of GH¢0.028 per share.

Source: GNA