Last Updated- Apr 7, 2009 8:01 - - 0 Comments


Whither, Amalbank?

Menson Torkornoo - Acting MD

Menson Torkornoo - Acting MD

Mr. Menson Cheyney Darlington Torkornoo, acting Managing Director of Amalgamated Bank Limited, is very optimistic about the outlook of Amalgamated Bank Limited. He has predicted that in the next two years the bank will be plying the highway reserved for only the top-five banks in the country.

What this means is that the bank is aiming to be ranked among the five biggest banks by market share.

This was the message Mr. Torkornoo clearly sent out after he sat with this reporter and outlined the vision he has set for himself after being assigned his new role.

He was very emphatic on that. “My vision is to move this bank to the fifth position in the next two years, 2009 inclusive.”

This cannot be mere wishful thinking. Amalbank’s provisional results for the first quarter this year show that it made a profit after tax of GH¢3.2 million, which is half of the total profit after tax made for the entire 2008.

The optimism is predicated on the past performance of the bank, especially since 2006. By all standards, the bank’s performance looks good. Forget about the fact that recently the Central Bank had to call them to order for a few infractions of the law, which led to the replacement of its former Managing Director.

And the incident is one thing the entire bank staff led by their acting MD/CEO have taken in their stride, put it behind them, and opened a fresh chapter.

When the issue came up during the conversation, Mr. Torkornoo sounded very philosophical but stopped short of being defensive instead offering a terse explanation: “I am one person who always likes to move on. Looking back can be a hindrance; even the Holy Bible says that one who holds the plough and looks back is not fit for the kingdom.

“For us, it is a learning point. I believe that in every circumstance there, is something good. I look for the positiveness in every situation.”

Taking over the helm does not imply that Torkornoo will radically change the bolts and nuts as the case has been with some companies. And he has made this abundantly clear.

“We have fine-tuned our dream. We have given it a new meaning, and we are motivated by our final destination.”

This cannot be far from the truth. In 2007, the bank languished at 18th position in terms of market share; a year on, Amalbank has inched up eight places to occupy 10th position. This solid performance has informed the new MD’s vision, which resonates with the entire Amalbank team.

Talking about solid performance, Amalbank delivered much-better-than expected results for 2008 financial year. For instance, its profit after tax grew significantly by a whooping 330% from GH¢1.5 million to GH¢6.9 million.

That is not all. The bank achieved a 100% growth in total assets, from GH¢150.5 million in 2007 to GH¢301 million in 2008. Customers’ deposits grew by 107% from GH¢125.7 million in 2007 to GH¢260.15 million in 2008. Gross loans and advances the bank gave out to its customers grew by 66.8% to GH¢121.37million.

The quality of Amalbank’s risk asset portfolio improved significantly in 2008 over the previous year. Total provision on impaired risk assets, including those specifically written-off, reduced from 2.12% of gross loans and advances (GH¢1.54 million) in 2007 to 1.14% (GH¢1.39 million) in 2008.

When asked about what could have contributed to Amalbank’s success, Mr. Torkornoo replied: “It is focus, focus, focus; nothing more than that”.

“We are revolutionising the banking landscape in Ghana with aggressive business prospecting and a strong customer service ethos. We are positioning ourselves strongly to be a market-leader in products.

“We deliver to customers our brand promise, which goes by the acronym SERVICE ­Speed, Expertise, Responsibility, Value, Innovation, Convenience and Excellence.”

Source: B&FT

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