HFC’S Financial Performance improves in 2017

On the Ghana stock exchange

HFC’s full-year financials for 2017 paints a positive picture of the company’s performance. The company made a profit of GHS 36.92 million in 2017 having recorded a loss of GHS 38.61 million in 2016. The turnaround in the company’s profitability was as a result of an improvement in its operating efficiency with its cost-to income ratio declining by 21%. It recorded an impairment gain on its financial assets of GHS 21,000 in 2017 compared to an impairment loss of 69.78 million in 2016.The increase in its interest income from GHS 276.01 million to GHS 310.60 million also contributed to the company’s profitability in 2017.

 

HFC’s capital adequacy ratio increased from 11.50% in 2016 to 23.14% in 2017 indicating an improvement in its solvency. Its non-performing loans ratio increased from 21.75% in 2016 to 25.14% to 2017 pointing to some deterioration in the company’s credit portfolio.  GN analysts are optimistic that the company will continue to create value for its shareholders based on its current performance and governments efforts to improve the asset quality of banks.

 

Trading ended yesterday on a positive note with the Composite and Financial Stock indices surging by 15.22 points and 17.91 points respectively to peg at a YTD of 25.32% and 27.96%. The rise in the overall market return was driven by capital gains on SCB, GCB, GOIL, SOGEGH, and BOPP. EGH, on the other hand, lost GHS 0.15 to trade at GHS 11.00. GGBL topped the charts in terms of trade as 461,300 shares worth GHS 1,176,794 changed hands.

 

On the Ghana Alternative market

Trading activities on the Ghana Alternative market was hushed as no shares changed hands.

 

On the Currency market

The Cedi appreciated marginally against the Dollar and the Euro and lost to the British Pound at the close of yesterday’s trade. The local currency exchanged at a mid-rate of GHS 4.4172 to the USD, GHS 6.1765 to the GBP and GHS 5.4522 to the EURO. The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market recorded a year to date depreciation of 1.51%.

 

By: GN Research

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