REPORT - nib-ghana.com · ANNUAL REPORT AND FINANCIAL STATEMENTS 2015. NOTICE OF MEETING . OUR CORE VALUES • Competence-We will be efficient and effective in our work to give

ANNUALREPORT

AND FINANCIAL STATEMENTS

2015

NOTICE OF MEETING

OUR CORE VALUES• Competence-We will be efficient and effective in our work to give

our best each day.

• Creativity-We will come out with innovative ideas in providing solutions to our customers’ needs.

• Candour-We will act with honesty and integrity in all our activities.

• Collaboration-We will cooperate with each other to give the best service to our cherished customers.

• Community-We will contribute to society by being active, responsible and generous members of the communities we find ourselves in.

• Commitment-We will be committed to quality in all our endeavours and to the ideals of this great institution

• Customer Service Excellence-Above all, we will ensure that we always exceed the expectations of every single customer, every single time.

VISIONTo be the most renowned Ghanaian bank for growth and efficiency

MISSIONOur mission is to offer the highest-quality, customer-focused bankingservices to our clients and to create value for our shareholders.

Board of Directors, officials and registered office

Report of the Directors

Independent Auditor’s report

Consolidated Statement of Profit or Loss and other Comprehensive Income

Conslolidated Statement of Financial Position

Consolidated Statement of Changes in equity

Consolidated Statement of Cash Flows

Notes to the Financial Statements

Contents2

12 - 14

15

17 - 18

19

20 - 21

22

23 - 87

Togbe Afede XIVMr Ernest Mawuli AgbesiMr. Stephen AhorMr. Emmanuel Adu-SarkodiePimampim Yaw Kagbrese VFlorence Chambas (Ms)Mr. Seth Ofori-OheneMr. Michael AyesuDr John Gartchie GatsiHajia Mahama Zaynab JoyceErnest Tawiah NunooMrs Dedaa Wiredu Agyei

ChairmanManaging DirectorMember (Replaced 24 July 2015)Member (Resigned 4 March 2015)MemberMemberMemberMemberMemberMemberMember (Appointed 23 October 2015)Member

Sheila Ofori-Diabene

Deloitte & Touche4 Liberation RoadP. O. Box GP 453AccraGhana

37 Kwame Nkrumah AvenueP. O. Box GP 3726Accra - Ghana

NTHC LimitedMartco House, Okai Mensah LinkP. O. Box 9563, AirportAccra - Ghana

Bank of GhanaBHF Bank – FrankfurtJP Morgan Chase Bank – New YorkGhana International Bank – LondonStandard Chartered Bank - New YorkStandard Chartered Bank - Frankfurt

Board of directors

Board Secretary

Auditors

Registered office

Registrar

Bankers

Corporate information

2National Investment Bank

Financial StatementsFor the year ended 31 December 2015

REPORT OF THE DIRECTORS TO THE MEMBERS OFNATIONAL INVESTMENT BANK LIMITED

DividendThe Directors have proposed payment of dividend of GH¢0.06 per share to shareholders for the financial year ended December 31, 2015.

DirectorsThe Directors who held office during the year were as follows:

Name DesignationTogbe Afede XIV Chairman Mr. Ernest Mawuli Agbesi Managing DirectorMr. Ernest Nunoo Director (Appointed 23rd October 2015) Mr. Michael Ayesu DirectorMs. Florence Chambas DirectorMrs. Dedaa Wiredu-Agyei DirectorPimampim Yaw Kagbrese V DirectorHajia Mahama Zaynab Joyce DirectorMr. Seth Ofori-Ohene DirectorDr. John Gartchie Gatsi DirectorMr. Stephen Ahor Director (Replaced 24th July 2015)



BOARD OF DIRECTORS

Ms. Florence ChambasBoard Member

Mr Seth Ofori OheneBoard Member

Mr Ernest Mawuli Agbesi MD/CEO

Togbe Afede XIV Board Chairman

Mr. Michael Ayesu Director

Mrs. Dedaa Wiredu-AgyeiDirector

4

Dr John Gartchie GatsiBoard Member

Hajia Zaynab Joyce MahamaDirector

Mr. Ernest NunooBoard Member

Pimampim Yaw Kagbrese VDirector

Mr Ernest Mawuli Agbesi -Mr. Ernest Mawuli Agbesi is a banker by profession. He has excelled over the years in the banking sector with hisvast experience. He has a Master’s degree in Business Administration (MBA), a Post Graduate Diploma and aDiploma in Accounting. He has ample experience in banking and started his banking career in 1985 with the thenGhana Co-operative Bank Limited. He joined International Commercial Bank in 2000 where he became a Divi-sional Head in 2006 in charge of Sales & Business Development, Estates and General Services and Retail Banking.Mr Agbesi joined uniBank (Ghana) Limited in January 2008 where he was Head of Sales & Business Developmentand later Head of Banking Operations. He supervised the organic growth of the Bank until his appointment as theManaging Director of the National Investment Bank Limited in March 2014. Currently he is also a Board Chair-man at Nestle Ghana Ltd. and the Chairman of the Board of Directors at First Ghana Savings and Loans CompanyLtd.

Togbe Afede XIV - Board Chairman Togbe Afede XIV is the Paramount Chief of the Asogli Traditional Area, and the President of the Volta RegionHouse of Chiefs. He was educated in Ghana and the United States of America (USA). He received a BSc. Ad-ministration (Accounting) from the University of Ghana (School of Administration), Legon, and a Master of Busi-ness Administration (MBA) from the Yale University School of Management, New Haven, USA. Among his keybusiness accomplishments, Togbe founded Africa World Airlines Ltd, Initiatives Strategiques Cote D'Ivoire, SASFinance Group Ltd, Sunon Asogli Power Ghana Ltd, World Trade Centre Accra and co-founded the Databank(Ghana) Limited, among others. His key socio-economic development initiatives include the initiation of theVolta-Ningxia Sister Regions Relationship and the founding of the Volta Region Development Agency and theAsogli Education Fund. He currently chairs the boards of Accra Hearts of Oak Sporting Club Ltd, Accra WorldTrade Centre Ltd, Africa World Airlines Ltd, Pioneer Kitchenware Ltd and SAS Finance Group Ltd. He is also amember of the boards of Africa Fertilizer and Agribusiness Partnership, Aluworks Ltd, Ensign College of PublicHealth, SAS Investment Management Ltd and Sunon Asogli Power (Ghana) Ltd. He was the Chairman of theEconomic Committee and the Head of Ministry of Finance Management Team (Ghana Government TransitionTeam), January-April, 2009, and a member of the President's Economic Advisory Council, 2009-2012.

Mr. Michael Ayesu - Director Mr. Michael Ayesu is an Economist and was educated in Ghana and the United Kingdom. He holds a Bachelor ofArts Degree in Social Sciences (Economics & Sociology) and a Diploma in Education from the University ofCape Coast. Mr. Ayesu also studied at the University of Glasgow, UK where he graduated with a Diploma andM.Phil. in Monetary Economics. He participated in various courses and seminars such as Financial Managementand Reporting, International Economic and Financial Negotiations at the International Institute of Public Admin-istration, Paris. He was a teacher at the St. Martins Secondary School, an Economics Officer at the Ministry of Fi-nance; Policy Analysis Division, a Senior Advisor to Ghana’s Executive Director at the World Bank Group,Washington D.C. and Head of the World Bank Unit of the Ministry of Finance. He is currently the Director, Ex-ternal Resource Mobilization Division at the Ministry of Finance.

Ms. Florence Chambas - Director Ms. Florence Chambas is a Management Consultant by profession. She is currently, the Business Developmentand Marketing Manager at EMPRETEC Ghana Foundation and an Accredited UNCTAD International MasterTrainer in Entrepreneurship. As Lead Trainer, she has facilitated over 50 Entrepreneurship Development Training,and Management Skills Workshops in Ghana, Nigeria, South Africa, Ethiopia and South Sudan since 2006 andhas over 18 years of experience in private sector development. As a Business Development Advisor of vast expe-rience, she has designed cutting edge solutions to management problems especially among women owned SMEsand mentored many successful young entrepreneurs. Ms. Chambas has a degree in Psychology and Managementand Executive MBA in Entrepreneurial Management. Ms. Chambas is married with three daughters.

BOARD OF DIRECTORS

MD/CEO



Mrs. Dedaa Wiredu-Agyei - Director Mrs. Dedaa Wiredu Agyei is a Civil Servant at the Ministry of Enviroment, Science and Technology. She holdsan MSc Economics degree (Finance & Credit). Mrs. Wiredu Agyei rose through the ranks and is currently a Di-rector at the Ministry of Enviroment, Science and Technology. Mrs. Dedaa Wiredu Agyei has undertaken varioustraining programmes both local and abroad among which are Diploma in Public Administration, Programme BasedBudgeting, Public Private Partnership (University of Queensland and University of Pretoria), and SME Develop-ment (JICA Training School, Kitakushu Japan).She has also participated in various workshops, Symposia andSeminars both local and overseas.

Mr. Seth Ofori-Ohene - Director Seth Ofori-Ohene is an Activist Journalist and Political Strategist by profession. He has sound background in po-litical strategy, policy innovation, political communication and activism. He started political work and activismwith the Democratic Youth League of Ghana. He has since been involved in a number of political and youth ac-tivities including activism with the National Union of Ghana Students, the All Africa Students Union and theUnited Nations. He also worked on three Presidential campaigns of the National Democratic Congress (2004,2008 and 2012).He is credited at the United Nations for his lead role in drafting of the Braga Youth Action Planof the Third World Youth Forum of the United Nations System in 1998. He has over the years developed skills foreffective strategic decision-making and advocacy. Strategy, innovation and political communication form the coreof his career. He holds a Diploma in Journalism (Undergraduate Level Professional Course) from the Ghana In-stitute of Journalism, a Diploma in Journalism (Postgraduate Level: Professional Course) from Thomson Foun-dation Editorial Study Centre-United Kingdom, Master of Arts in Political Communication from Cardiff University,UK and a Postgraduate Diploma in Strategy and Innovation from University of Oxford, UK. He is a former Directorof Communications of the National Democratic Congress.

BOARD OF DIRECTORS

Hajia Zaynab Joyce Mahama - Director Hajia Zaynab Joyce Mahama – Hajia Mahama is a graduate teacher by profession, a Businesswoman and Politi-

cian. Hajia Mahama holds a Bachelor of Education Degree from the University of Education, Winneba and alsoa Diploma in Home Economics. She has held many leadership positions for the National Democratic Congress(NDC) and was the Regional Women Organizer in the Brong Ahafo Region and the Deputy National Women Or-ganizer in Accra for four (4) years respectively. She is currently the National Women’s organizer of the NDC, theChairperson of Atebubu College of Education, the Treasurer of Ghana Olympic Committee and a member of theInstitute of Local Government Studies. Hajia Zaynab Joyce Mahama is the founder of the Finger of God Enterprise,an NGO that solicits for funds for women in rural areas. She has participated and represented the country in variousworkshops and seminars in Washington D.C and Namibia. She participated in the recent programme dubbed “Mak-ing Cents International” - helping the poor in the society and the living of women in Africa, in New York in March2015.

Mr. Ernest Nunoo - Director

Mr. Nunoo is a seasoned Banker with over 30 years’ experience in Banking and Finance. He is currently the GroupChief Executive Officer of Royal Derby Group of Companies, comprising ten subsidiary companies; he is alsothe Country Director of Michael Stevens Consulting International. His work experience includes Head of RetailBanking, Merchant Bank and Head of Branch & Credit Control, Metropolitan and Allied Bank. He had earlierworked at Ghana Commercial Bank as the Organisation & Methods (O & M) Officer. Mr. Nunoo obtained a Bach-elor of Science (BSc.) in Maths from Kwame Nkrumah University of Science and Technology (KNUST) in 1982.He holds a Post-Graduate Diploma in Business Operations from Cranfield School of Management, UK and anotherPost-Graduate Diploma in Retail Banking from BAI Graduate School of Retail Banking, University of Wisconsin,Chicago, USA.



Dr. John Gartchie Gatsi - Director Dr. Gatsi holds Bachelor of Science degree in Administration and Bachelor of Laws (LL.B) from University of

Ghana, Legon. He also holds Master of Science Degree in Finance and Master of Science Degree in InternationalAccounting from University of Goteborg, Sweden as well as Master of Business Administration (MBA) from theBlekinge Institute of Technology, Sweden. He further holds a PhD in Finance from Central University of Nicaraguaand Doctor of Finance Degree from the SMC University, Switzerland. Dr. Gatsi is a Chartered Economist andSenior Lecturer at the School of Business, University of Cape Coast. He is also a Chartered Petroleum Economist,member Institute of Directors-Ghana and Fellow of American Academy of Financial Management and Associationof Certified Chartered Economists (ACCE). He was a member of the panel of jury that selected the 2014 Instituteof Financial and Economic Journalists Flamingo Awards. Prior to joining academia, he worked with Value AddedTax Service focusing on Tax Debt Management. He is currently a member of the School of Business AdvisoryBoard and coordinates the MBA Oil and Gas Programme under the Institute for Oil and Gas Studies, Universityof Cape Coast. He provides training consultancy in Financial Economics and Oil and Gas Management. He is theFounder and Director of John Gatsi Educational Foundation. He has presented papers in local and internationalconferences and published in international peer reviewed journals on financial performance in the Ghanaian fi-nancial industry.

Pimampim Yaw Kagbrese V - Director Pimampim Yaw Kagbrese V is the Omanhene of the Yeji Traditional Area. He is a farmer and a building contractorby profession. Pimampim Yaw Kagbrese V was educated at the Yamba and the Bekwai College of Accountancywhere he obtained a Royal Society of Arts (R. S. A.) Stage II. Currently, he is the President of the Brong-AhafoRegional House of Chiefs and a member of the National House of Chiefs.

BOARD OF DIRECTORS

EXECUTIVE MANAGEMENT TEAM

Mr John Kweku AsamoahChief Operating Officer

Mr Martin AmenyezdiGM - Operations and Technology

Mr Gariba Alex Amadu GM - Risk

Mr. Theophilus Dorgbetor GM - Finance & Strategy


7

EXECUTIVE MANAGEMENT TEAM

Mr Theophilus D Dorgbetor - GM - Finance and StrategyMr. Theophilus Dorgbetor is currently the General Manager for Finance and Strategy. He is a Chartered Accountantand a member of the Institute of Chartered Accountants, Ghana. He graduated from the University of Ghana Busi-ness School with BSc Administration (Accounting) in 1991 and a Master of Business Administration (1998). Hehas attended a number of courses/seminars in Banking, Finance, Information Technology, Credit and Project Ap-praisal, Treasury Management, International Banking, Accounting and Financial reporting both locally and abroad.Mr. Dorgbetor joined NIB in 1993 and served in various departments and capacities including Executive Head ofFinance and Planning, Head, Loan Management Department; Senior Manager in charge of Final Accounts, branchcontrol, treasury and officer responsible for Bank of Ghana Prudential returns. Prior to joining NIB, he workedwith National Mobilisation Programme as a Programme Officer and Auditor (1991-1992) and Christork IndustriesLtd, as Accounts Manager at Takoradi (1992-1993). He is also a Director of Nestle Ghana Limited.

Mr Ernest Mawuli Agbesi - MD Mr. Ernest Mawuli Agbesi is a banker by profession. He has excelled over the years in the banking sector with hisvast experience. He has a Master’s degree in Business Administration (MBA), a Post Graduate Diploma and aDiploma in Accounting. He has ample experience in banking and started his banking career in 1985 with the thenGhana Co-operative Bank Limited. He joined International Commercial Bank in 2000 where he became a Divi-sional Head in 2006 in charge of Sales & Business Development, Estates and General Services and Retail Banking.Mr Agbesi joined uniBank (Ghana) Limited in January 2008 where he was Head of Sales & Business Developmentand later Head of Banking Operations. He supervised the organic growth of the Bank until his appointment as theManaging Director of the National Investment Bank Limited in March 2014. He is also the Board Chairman atNestle Ghana Ltd. and the Chairman of the Board of Directors at First Ghana Savings and Loans Company Ltd.

Mr Martin Kofi Amenyedzi - GM - Operations and TechnologyMr. Martin Kofi Amenyedzi, is currently the General Manager for Operations and Technology. He is a banker byprofession and graduated from the University of Cape Coast in 1981 with a Bachelor of Commerce (Hons) Degree,and a Diploma in Education. He started his Banking career with the National Investment Bank in January, 1986after a year’s accountancy trainee experience at Peat Marwick, Okoh & Co. (now KPMG) in 1985. He held variouspositions at the Bank. He was appointed Branch Manager in 1993 and was the branch Manager for Abeka andTarkwa branches. He was the Head of Marketing in 2000, and later the Deputy Head, International Banking. Healso worked in the Audit and Inspection Department for a number of years. He was appointed the Executive Head,Banking Operations in March 2014, then as the General Manager, Operations and Technology Department in May,2014.

Mr Gariba Alex Amadu - GM - Risk Mr. Gariba Alex Amadu is currently the General Manager for Risk. He joined the bank in November 1983 as aProject Officer and has risen through the ranks to become the General Manager for Risk Management. He has aBachelor of Science degree in Agriculture and a Diploma in Education obtained concurrently from the Universityof Cape Coast in 1981. He also has a Master’s degree in Banking and Finance from the FinAfrica Foundation(now Fondazione Giordano Dell’ Amore) in Milan, Italy.

John Kweku Asamoah - Chief Operating OfficerIs currently the Chief Operating Officer of the Bank. He is a Chartered Accountant and has been in the BankingIndustry for the past fifteen (15) years. He started his Banking career at the International Commercial Bank Limited.He joined uniBank in 2008 and worked in various management roles in Accounts/Finance and Risk Management.John Asamoah has passion for quality customer service delivery and credit related functions. He is a member ofthe Institute of Chartered Accountants (Ghana) and a fellow of Institute of Certified Book-Keepers UK. He is alsoa member of the Chartered Management Institute, UK and Chartered Financial Managers (CFM), USA. He hasan MBA in Strategic and Consultancy Management.



INTRODUCTION

Distinguished Shareholders, Directors, Management and Staff of NationalInvestment Bank Limited (NIB), invited guests, ladies and gentlemen, it ismy pleasure to welcome you to the 47th Annual General Meeting of NIB.It is a great honour for me to present to you the Annual Report and FinancialStatements of your Bank for the financial year ended 31st December, 2015.I take this opportunity on behalf of the Board, to express our appreciation toall shareholders, management and staff of NIB, for their dedication and com-mitment to the pursuit of the strategic growth of the Bank and their hardwork which has enabled us to achieve impressive results in the year2015.Our 2015 performance showed a consolidation and improvement onthe gains and successes of the previous years despite the severe economicchallenges we experienced in the year under review. Thus, 2015 recordedan impressive increase in the after tax profit of the Bank. I am happy to saythat your Bank’s transformational agenda is seriously on course and yieldingfruitful results, and that our objective to be among the top tier banks in Ghanais also on course.

GLOBAL ECONOMYThe global economy in 2015 performed below expectation. Growth fell shortof projection, slowing to 2.4 percent from 2.6 percent in 2014. This perform-ance was mainly due to the continued decline in economic activity in emerging and developing economies coupledwith the downturn in commodity prices, and slowdown in world trade and capital flows. We expect that commodityprices will gain modest recovery from the downturn which would encourage investment for global growth espe-cially for commodity dependent economies. We also expect that the advanced economies will have accommodatingmonetary policies, whereas emerging and developing markets will experience tightness due to currency depreci-ation.

THE GHANAIAN ECONOMYThe Ghanaian economy experienced a marginal recovery, though lower than expected in 2015. The underlyingfactors were:

• Deteriorating commodity prices, particularly of gold and oil• Energy supply shortfalls• Exchange rate volatility, and• Inadequate access to credit and markets.

Growth slowed for the fourth consecutive year to an estimated 3.4 percent in 2015 from 4 percent in 2014 asenergy supply shortfall, higher inflation, and ongoing fiscal consolidation programme with IMF weighed on eco-nomic activity. Inflation rose slightly to 17.7 percent by December 2015, from 17 percent in the previous year.The Bank of Ghana in response increased its policy rate to 26 percent as at the end of December 2015, from 21percent at the end of 2014.The current account deficit narrowed from 9.6 percent of GDP in 2014 to 7.8 percentof GDP in 2015. The Ghana cedi, following the issuance of Eurobond and Cocoa Syndicated loans, enjoyed somestability, losing 18 percent of its value against the US dollar in 2015, compared with 32.45 percent in 2014.

THE BANKING SECTORThe banking sector maintained its competitiveness in service delivery, product innovation and customer depositmobilization through cutting edge information technology. At the same time, the Bank of Ghana strengthened itsregulatory regime to meet the sector challenges. As already mentioned, Bank of Ghana’s policy rate stood at 26percent at the end of 2015, up from 21 percent at the end of 2014. Treasury bill rates were however relativelylower in 2015. At the end of December 2015, the yield on the 91-day bill was 22.90 compared with 25.81 percentat the end of 2014.

Total assets of the banking sector grew by 23.2 percent to GH¢63.38 billion as at the end of December 2015, com-pared with the 42.2 percent growth recorded in 2014. Domestic assets component of total assets increased by 24.3percent to GH¢58.07 billion at the end of December 2015, compared with the 39.9 percent growth recorded in2014.The industry’s total deposits stood at GH¢41.25 billion at the end of December 2015, having grown by 27.2

CHAIRMAN’S STATEMENT

Togbe Afede XIV Board Chairman



percent compared with the 39.0 percent growth recorded in 2014. Net loans and advances was GH¢27.04 billionas at the end of December 2015, representing a growth of 21.7 percent, compared with the 44 percent growth in2014. The industry’s fundamentals showed a positive outlook.

NIB’S OPERATING RESULTSThe Bank achieved very impressive operational results in 2015. Total operating income for the year increased by51.86 percent to GH¢348.83 million in 2015, from GH¢229.70 million in 2014. The corresponding operating ex-penses increased by 65 percent to GH¢178.87 million, from GH¢108.22 million in the previous year. Credit im-pairment losses for the year increased by 43.66 percent to GH¢24.41 million, from GH¢16.99 million in 2014. Asa result, the Bank recorded a profit after tax for the year 2015 of GH¢120.11 million, an increase of 51.28 percentover the 2014 performance of GH¢79.39 million.

The balance sheet of the Bank also continued to strengthen as shareholders’ funds grew by 11.57 percent toGH¢543.18 million, from GH¢486.82 million as at the end of 2014. Similarly, total assets grew by 14.45 percentto GH¢2,654.69 million, from GH¢2,319.57 million at end of 2014.The Bank’s customer deposit liabilities in-creased by 32.60 percent, from GH¢1,343.81 million at the end of2014, to GH¢1,781.93 million at the end of2015. The Capital Adequacy ratio of the Bank was 24.81 percent at the end of 2015, well above the minimum re-quirement of 10 percent.

PROPOSED DIVIDENDThe Directors have analyzed the financial performance of the bank in 2015and after taking into consideration theneed to strengthen NIB’s balance sheet and increase its capitalization, have decided to recommend the paymentof GH¢0.06 per share as dividend to shareholders.

CORPORATE SOCIAL RESPONSIBILITY In the course of the year 2015, we supported NADMO to enable them to provide relief items to victims of theJune 3rd flood and fire disaster. We also supported the National Youth Authority’s plantain project at Mampong,aimed at attracting the youth into agriculture. The Ghana Armed Forces and Retired Footballers Association werealso supported. Other recipients of support are Accra Psychiatric Hospital (for dormitory renovation), the GRAFTFoundation, which undertakes free surgeries for children with birth deformities, the National House of Chiefs, theGhana Police Service and Ghana Blood Foundation, among others.

FIRST GHANA SAVINGS AND LOANSThe First Ghana Savings and Loans Ltd (FGSL) is a subsidiary of the bank. The Bank’s equity stake now standsat 98.98 percent. NIB’s capital injection of GH¢15 million in 2014,as part of the Board of Directors’ strategy toexpand the service delivery network of the Bank has begun to yield positive returns. FGSL recorded after taxprofit of GH¢0.62 million in the year under review, compared to a loss of GH¢3.18 million in the year 2014.

OUTLOOK FOR THE YEAR 2016The Bank in 2016 will continue to pursue its aggressive strategic plan which aims at expanding its service deliverynetwork in order to increase market share and maximize shareholder value. This will be approached with due con-sideration to the prevailing economic conditions. We aim to improve upon the Bank’s competitiveness, in orderto position it to be able to take advantage of the expected rebound in economic activity.

Our branch expansion strategy for deposit mobilization aimed at reaching out to the unbanked and bringing ourproducts and services to the doorsteps of our valued customers is still on course. The Bank opened eleven (11)branches in the year 2015. We are opening more branches this year as part of our strategy. We shall also continuewith our strategy of rigorous manpower training and development and comprehensive staff reward and motivationas part of our efforts to enhance our brand and achieve our corporate goals.

CONCLUSIONDistinguished Shareholders, your Bank is now on course to become a force to reckon with in the industry. Ourstrategy is working and profitability is increasing. I take this opportunity to thank all shareholders and other stake-holders, especially our valued customers, for their loyalty throughout the year. For sustainable profitability andgrowth of the Bank and for maximization of shareholder value, more hard work is expected from us. I wish toseize the opportunity to also commend colleague directors, management and staff of the Bank for their hard work.As a Board we are prepared to put in more effort to sustain the Bank’s profitability and growth. And with God onour side, we know we shall succeed.

Thank you and May God Almighty bless us all.



INTRODUCTIONTogbe Chairman, Directors, Distinguished Shareholders, Ladies and Gentlemen;it is of great delight that I present to you, your Bank’s performance for the fiscalyear 2015. The year 2015 was rather a challenging year for the Financial Serv-ices Industry especially the Banking sector. National Investment Bank consoli-dated its gains made from the previous years. The Bank’s pursuit for growthbuoyed by its aggressive Strategic Pan has begun yielding results.

THE GHANAIAN ECONOMYThe country’s economic challenges have negatively impacted the performanceof the banking sector in 2015. The ongoing IMF program brought some fiscalconsolidation and stability in the exchange rates, though with high inflationarypressures in the last quarter. General economic activities were low largely dueto high interest rates and the shortages of energy supply which have createdmajor challenges for businesses.

THE BANKING INDUSTRYThe banking sector continues to experience stiff competition, especially with re-spect to deposit mobilization, product development and service delivery channels.First National Bank (owned by First Rand Bank of South Africa) started operationsin Ghana in October, 2015. The sector recorded high Non Performing Loans andLoan Loss Provisions. Inflationary pressures were high and with response the Bank of Ghana adjusted the Policy Rateto 26 percent (up from 21 percent for 2014).Treasury bill rates as well as lending rates have remained relatively high due to high inflation and Bank of Ghana’spolicy rate. Interest on Treasury Bills for 91-day and 182-day closed the year with 22.90 percent and 24.45 percent re-spectively. One year note registered 21 percent. In spite of that, the banks employed every available means to bringtheir respective products and services to the doorsteps of customers.

THE BANK’S OPERATING RESULTSThe strategic growth agenda pursued by the Board and Management of the Bank yielded positive results. The Bankrecorded significant improvement over previous years in all aspects. The Net profit after tax was GHc120.11 millionfor the year ended 31st December 2015 compared with GH¢79.39m in 2014. This represented an increase of 51.27 per-cent. Customer Deposits also increased by 32.60 percent to GH¢1,781.93 million in 2015 from GH¢1,343.81millionrecorded in 2014. Also the Bank registered 14.45 percent growth in its total assets from GH¢ 2,319.57 million in 2014to GH¢2,654.69 million in 2015. Shareholders’ Fund increased from GH¢486.82 million in 2014 to GH¢543.18 millionin 2015. This represented 11.57 percent annual growth. The Bank at the end of 2015 met Tier One capital required byBank of Ghana.

HUMAN CAPITAL DEVELOPMENTThe Bank adopted best human resource management practices in order to ensure that all members of staff were welltrained, disciplined and highly motivated. The human resource management strategy was guided by the philosophy ofmaximizing the potentials of our staff and developing their skills in order to enhance productivity and growth. The newstaff performance evaluation system based on targets was also implemented to strengthen the performance evaluationsystem of the Bank.

GOING FORWARDOur commitment to growth and complete turnaround as promised you two years ago are on course. This has been shownin our sterling performance in 2015 despite the industry challenges. We shall improve on the Bank’s risk management,credit delivery and monitoring, product innovations and information technology to deliver tailor made customer serviceto our cherished ever growing customers.The branch network expansions to bring banking to the door steps of our dis-tinguished customers are fast gaining grounds. Our objective is to expand service delivery networks in order to increaseour market share. Eleven (11) Branches were opened in 2015. We are on course to add about twenty two (22) newbranches by the end of 2017.

APPRECIATIONOn behalf of Management, I thank the Board Directors for their continued guidance and oversight and our customersfor their business and the opportunity to be of service to them and our staff, for their loyalty and commitment to work.

Thank you.

MANAGING DIRECTOR’S STATEMENT




National Investment Bank Financial Statements

For the year ended 31 December 201512

135,120







30th March



17 to 87

16

30th March





23 - 87

(178,874)

subsequent to

subsequent to



23 to 87



30th March

23 to 87



23 to

87

544,

579



23 to

87

23 to

87



23 to 87

1,023,269

124,657

153,835

109,057



























































Total



Total113,701108,507656,09338,520190,485769,594

1,876,904

191,069193

33,872 961,75633,872





757,88010,186

414,341















178, 875

70,858







0



















492

6,630

5,975

1,582

1,926-





(492)

6,633

-1,650

1,962

5,995





870

5



061 061 069





9 7







2 3 7





1,101,527 2,115,443 2,134,616

1,489,920







3. To approve the appointment of Mr. Ernest Nunoo

7. To fix the remuneration of the Directors

8. To authorize the Directors to fix the remuneration of the Auditors

This Proxy Form should not be sent to the Registrar if the member will be attending the meetingNotes: 1. A member (Shareholder) who is unable to attend the Annual General Meeting is by law

to vote by proxy. The Proxy Form has been prepared to enable you exercise your voteif you cannot personally attend.

2. Provision has been made on the form for the Chairman of the Meeting to act as your proxy but if you so wish, you may insert in the blank space the name of any person whether a Member of the Bank or not who will attend the meeting and vote on your behalf instead of the Chairman.

3. In case of joint holders, each holder should sign.

4. If executed by a corporation, the Proxy Form must bear its Common Seal or be signedon its behalf by a Director.

5. Please sign the above Proxy Form and post it so as to reach the address shown belownot later than 48 hours.

6. The proxy must produce the Admission Slip sent with the Notice of the Meeting to obtain entrance to the meeting.

THE REGISTRARNTHC LIMITEDMARTCO HOUSEOKAI MENSAH LINKP. O. BOX 9563AIRPORT, ACCRAGHANA

Documents

REPORT - nib-ghana.com · ANNUAL REPORT AND FINANCIAL STATEMENTS 2015. NOTICE OF MEETING . OUR CORE VALUES • Competence-We will be efficient and effective in our work to give