HFC Bank Ghana has stated that it intends to maintain its lead in the mortgage industry by providing affordable housing to Ghanaians.
The Managing Director of the Bank, Asare Akuffo, who disclosed this, said the company’s target is to provide middle income earners with mortgages ranging from GH¢40,000 to GH¢ 80,000.
He said “most banks have targeted high earners while neglecting the middle income earners. But we want to give the opportunity to middle income earners to also own a house because that area has less risk.”
Mr. Akuffo was addressing the media at the “Facts Behind the Figures” programme organized by the Ghana Stock Exchange.
Its mortgage portfolio grew by 22.95 percent to GHS 70.76 million in 2011 from GHS 57.55 million in 2010 on account of the Public Sector Workers Housing Scheme.
He noted that the bank’s stance on quality growth in both Assets and Liabilities impacted positively on the overall performance for the year ending 2011, adding that the total assets of the Group increased by 19.4 percent to GHS 435.3 million.
Customer deposits on the other hand increased by 47.1 percent to GHS 230.3 million.
He said total business loans of the bank registered a growth rate of 15.98 percent in 2011 from GHS 120.71 million to GHS 140 million.
Mr. Akuffo indicated that “the plan to re-organize the Bank into a holding company with four major subsidiaries for Banking, Investment Management, Private Equity and Real Estate is yet to receive regulatory approval.
“Although delayed, we are confident that this approval will be obtained soon because the proposed structure is not new to the Ghanaian banking industry and it seeks to streamline our operations and to strategically position it to take advantage of new business opportunities.”
He added that internal restructuring of the posture of the bank’s branches to make them more marketing-oriented commenced in the last quarter of the year and it is to be completed in the first half of 2012.
According to the MD, the bank will complete the second phase of its capital raising exercise to meet the new regulatory minimum capital requirement within the first half of 2012.
This, he stated, should increase the bank’s stakeholders’ funds to about GHS 100 million.
He said “the higher level of capital will enable us apply our skills in servicing SME businesses to grow our loan portfolio and also participate in syndications leading to the financing of oil and gas, infrastructure and residential real estate projects.”
By Esther Awuah