National Investment Bank Declare 9.5 Billion Cedis Profit

Accra, (Greater Accra) 18 - Sept.

Accra, (Greater Accra) 18 - Sept. Shareholders of the National Investment Bank today accepted a dividend of 70 cedis per share for last year, a 100 per cent increase over the 1995 dividend, at their annual general meeting in Accra. A total of 2.4 billion cedis will therefore be paid to shareholders. Togbe Kwao Anipati the fourth, chairman of the board of directors, who announced this promised an additional dividend of not less than 200 cedis before Christmas to reward them for their patience and commitment in the past years. Togbe Anipati, who is also Chief of Mepe traditional area, said in deciding the level of dividend, the directors took into consideration the build up of money to maintain the bank's capacity to service the need of customers. More than 929.9 billion cedis was subsequently transferred to the statutory reserves, while four billion cedis was transferred to income surplus. The Bank's total income increased to 20.5 billion cedis from 16.1 billion cedis in 1995. Interest expense went up from 6.9 billion cedis to 14.7 billion cedis, while profit before tax rose to 9.5 billion cedis from 7.8 billion cedis. Togbe Anipati attributed the modest gains to some healthy interventions made by the Bank of Ghana which were favourable for the economy and the private sector. On the future of the bank, Togbe Anipati said it was interwoven with government's plan to privatise it. He said a number of strategic investors have expressed interest in the sale and a lot of progress has been made in that direction. "You will recall that as part of the Financial Sector Adjustment Programme started in 1986, the government decided to off load some of its shares in the bank. This programme is still on course. "In fact it was envisaged that the privatisation would have been completed last year, but due to circumstances beyond the control of FINSAP implementation secretariat, including the presidential and parliamentary elections held last year, the target date could not be met". Reacting to a long intervention by a shareholder on the disadvantages of selling shares in state banks to foreigners, Togbe Anipati explained that the issue was a government policy that could not be discussed at the meeting. Mr. Kwaku Amoah Awuah, the shareholder, had said: ''It unfortunate that our directors will allow foreigners, called strategic investors, to buy shares in a sensitive institution like the bank. He said by doing so we are compromising our national sovereignty adding ''No country, neither Britain nor Malaysia will do this.'' "Judging from the performance of the banks and the recent off- loading of shares, I believe Ghanaians have enough money to buy all the shares. So if it is the expertise that we need from foreigners we must engage their services on contract". Togbe Anipati assured the shareholders that the directors will ensure that the transfer of ownership is pursued in a way that will benefit all stakeholders. "We shall push for a certain percentage of the government's share to be floated so that the Ghanaian public, including shareholders, can buy shares or increase their shareholding". On a suggestion to pay dividend bonus to shareholders before strategic investors are allowed to participate, Togbe Anipati said the issue will be considered. Mr. Steve Dadzie, Managing Director of the bank, was happy that shareholders had taken keen interest in the activities of the bank. He explained that as the majority shareholder, government had the right like any share holder, to off-load its shares. Responding to a question about the remarkable increase in donations to the public last year compared with the previous year in spite of complaints made at the last general meeting, Mr. Dadzie said the bank had become more alive to its social responsibilities. "As a corporate citizen, the bank has social responsibilities. If the medical school has problems, if Korle-Bu facilities have ran down we must assist them," he said, adding that, decisions on donations are taken prudently. Other share-holders asked for clarifications on salaries and bonuses of staff, investments, bad debts, among others. The meeting unanimously re-elected its five non executive directors whose term had expired and approved their fees.