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Business

HFC Bank changes name to “Republic Bank”

HFC Bank will be renamed Republic Bank, following an approval by the Board of Directors.

This was disclosed by the Managing Director of the Bank, Robert Le Hunte.
He explained that the Board of Directors for the bank has given approval for them to approach the shareholders of the bank on two significant matters.

These issues are; to change the name of the bank to Republic Bank (Ghana) Limited with the new ownership structure and to increase the level of capital of the bank by 50 million cedis.

This follows the bank’s ability to cover 65 percent of its Non-Performing Loans(NPL) in the first half of 2017.

Addressing the media on Thursday (July 27, 2017) Le Hunte said the bank has returned to profitability after making a loss of 80 million dollars for two years.

“After 2 years of losses and GH¢150 million in provision, HFC Bank returned to profitability producing the best first half year results in the history of their 27 years of existence. Additionally, the Bank now boasts of having one of the highest cover ratio i.e. provision of non-performing loans of over 65% which provides the Bank with protection against future shocks going forward.”

In his opinion, the commitment of staff and the training given them helped to improve the financial status of the bank tremendously.
He was quick to admit that even though they are making profit, the work was far from over.

“During the two year period, over US$30 million was spent on upgrading the Information Technology infrastructure and refurbishment of the branch network. In addition, investment was made in training and developing the Staff with the assistance of RFHL,” he said.
Le Hunte also indicated that the two matters they will be seeking the approval of shareholders on are in line with keeping up with the new ownership structure.

“This new capital together with the BBB+ S&P rating of Republic Bank Limited makes the Bank one of the strongest in the industry and puts them in a better position to build on the strong foundation in the housing industry and the future prospects in the oil and gas industry.”

“During the two year period, over US$30 million was spent on upgrading the Information Technology infrastructure and refurbishment of the branch network. In addition, investment was made in training and developing the Staff with the assistance of RFHL,” he said.

He further added that the bank will raise 50 million cedis from the bourse after a board is constituted for the Securities and Exchange Commission

“This new capital together with the BBB+ S&P rating of Republic Bank Limited makes the Bank one of the strongest in the industry and puts them in a better position to build on the strong foundation in the housing industry and the future prospects in the oil and gas industry.”

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