“Our first half results show that we are making steady progress in the execution of our strategy. We continue to pursue a recovery and restructuring of impaired assets, while maintaining the right financial framework to manage capital, liquidity and cost,” Mr Kweku Bedu-Addo, the Chief Executive Officer of the bank, said in a release on the bank’s half-year financial results.
He said operating performance during the period was in line with general expectations arising out of the bank’s strategic response to the recent economic environment.
Operating income increased by 18 per cent to GH¢297 million compared to GH¢252 million recorded in June 2015 on the back of strong underlining business.
On the other hand, operating expenses decreased by 26 per cent to GH¢77 million compared to the June 2015 position of GH¢104 million as a result of prudent and efficient cost management, he said.
Mr Bedu-Addo said impairment charges decreased by 55 per cent to GH¢16 million compared to the same period in 2015 as the bank continued to restructure and recover impaired assets
He said pre-tax profit for the period went up by 83 per cent to GHC203 million compared to GH¢111 million in June 2015 while Earnings per Share increased by 105 per cent to GH¢1.29 during the period under-review.
Mr Bedu-Addo said the macro-economic environment for the first half of the year had been more stable relative to same period of the preceding two years.
“Even though the general economy remains quite fragile the medium term outlook remains positive. Our focus for the rest of the year is to continue to execute and deliver on strategic priorities as well as to invest in the business,” he said.
Mr Kweku Nimfah-Essuman, the Acting Chief Financial Officer, said: “The balance sheet will be continuously managed to ensure income growth momentum, cost efficiency and strong capital and liquidity base”.
Accordingly, for the first half of 2016, the bank recorded a Capital Adequacy ratio of 21 per cent (inclusive of current year profits) and Return on Equity of 25 per cent.