NIB targets additional capital from stock market

The National Investment Bank (NIB) is to list on the Ghana Stock Exchange (GSE) to raise additional capital to improve the bank’s profitability.

Although details on the listing are sketchy at the moment, the board chairman of the bank, Togbe Afede XIV, told shareholders at the bank’s 47th annual general meeting (AGM) that listing on the capital market would help diversify the shareholder base and increase access to its shares. 

He said currently the shares of the bank were in the hands of a few people, and listing would, therefore, create enough liquidity to improve its profitability and create more value for shareholders.    

“The good news is that NIB has very few shares in the public hands, I expect that when we are listed, demand for shares will be in excess of supply, and that will inure to the benefit of us all,” he said. 

According to him, discussions were ongoing with stakeholders of the bank on how best to turn around the fortunes of the bank. 

“We will all reap the benefits on the capital gains of our investments. We are currently serious discussions with Government, the Ministry of Finance and the Bank of Ghana to look at the future of your bank. Am sure when we meet next year, we will have a lot to tell you,” he said.  

Return for shareholders

On the back of increased profitability in 2015, shareholders are to enjoy a dividend of GH¢0.06 per share up from the GH¢0.05 per share they got in 2014.

Togbe Afede XIV urged shareholders to exercise patience as the return on their investments will grow over time.

“I must commend you and urge you to continue to be patient. We are seating on wealth and am sure when we get listed on the market, we will realise the true value of your investments,” he said.  

Profitability in 2015

The bank posted a profit of GH¢120.11 million in 2014, showing a 51.28 per cent increase over the 2014 profit of GH¢79.39 million. 

Total operating income of the bank for 2015 increased by 51.86 per cent to GH¢348.83 million from GH¢229.70 million. The corresponding operating expenses also increased by 65 per cent to GH¢178.87 million, from GH¢108.22 million in the previous year.  

The balance sheet of the bank also continued to strengthen as shareholders’ funds grew by 11.57 per cent to GH¢543.18 million, from GH¢486.82 million as of the end of 2014. Total assets grew by 14.45 per cent to GH¢2,654.69 million, from GH¢2,319.57 million at the end of 2014.

The capital adequacy ratio of the bank was 24.81 per cent at the end of 2015, well above the minimum requirement of 10 per cent.