Access Bank (Ghana) Plc 2016 Annual Report
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Access Bank (Ghana) Plc 2016 Annual Report Access Bank Ghana Plc - Annual Report 2016 Access Bank Ghana Plc - Annual Report 2016 Contents 01 Overview 04 Governance Welcome 8 The Board 54 Business and Financial Highlights 9 Directors, Officers and Professional Advisors 56 Location and Offices 10 Management Team 57 Chairman’s Statement 12 Directors’ Report 58 Managing Director’s Review 15 Independent Auditor’s Report 60 Responsibilities of the Board 64 Authority of the Board 64 Business Review Financial 02 05 Statements Corporate Philosophy 20 Statement of Comprehensive Income 68 Our Year 21 Statement of Financial Position 69 Commercial Banking 24 Statements of Changes in Equity 70 Business Banking 25 Statement of Cash Flows 72 Personal Banking 26 Notes 73 Corporate Banking 28 Other financial Information 119 Oil and Gas 29 Value Added Statement 123 Investment Banking 30 Digital Banking 32 Operations and IT 34 Service Quality 36 Our People, Culture and Diversity 38 Sustainability and Shareholder 03 Risk Management 06 Information Community Engagement 44 Notice of Annual General Meeting 126 Sustainability Report 46 Proxy Form 127 Sustainable Banking through Top 20 Shareholders 128 Risk Management 48 Corporate 07 Information Branch Network 132 Locate our ATMs 134 International Network 135 4 5 Overview A brief review of Access Bank’s financial and operational achievements in the past year. Welcome 8 Business and Financial Highlights 9 Location and Offices 10 Chairman’s Statement 12 Managing Director’s Review 15 6 Access Bank Ghana Plc - Annual Report 2016 Access Bank Ghana Plc - Annual Report 2016 Welcome Business and Financial Highlights Over the past 7 years, we have demonstrated our commitment to building a new Ghana by 2016 2015 developing timely and relevant banking solutions for the everyday Ghanaian. Our drive to enhance GHS’000 GHS’000 the financial well-being of our customers, shareholders, communities and other stakeholders through our banking operations has become evergreen than ever before. Revenue 487,852 420,870 We understand that our customers’ expectations are evolving rapidly and are excited about the Profit before income tax 69,070 122,751 many opportunities for technology to improve customer convenience and provide a consistent experience across all our delivery channels. Profit after income tax 41,949 80,435 Through our digital play, our Bank is using technology to deliver a best-in-class ecosystem of Shareholders’ funds 429,562 359,950 e-banking and e-commerce solutions, which makes banking friendly and more accessible to all. Capital expenditure (including intangible For us, the next few years is promising as we strengthen our resolve to explore new frontiers that assets and other prepayments) 53,272 54,185 bring added value and enable our stakeholders prosper in their endeavours. Total assets 2,679,839 2,424,646 As we journey on in 2017, we will continue to remain a customer-centric bank, delivering on our brand promise of speed, service and security. Join us on our journey to a new Ghana in the diamond age. Earnings per share (GHS) 0.38 0.73 Net assets per share (GHS) 3.6409 3.2520 Shareholders’ PBT Total Assets Funds +19% GHS’MM -44% GHS’MM +11% Our Brand Promise GHS’MM 123.2 122.7 2680 429.56 2420 359.95 71.8 69.1 1720 291.2 216.5 991.1 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 Gross Earnings Customers’ EPS -48% GHS’MM +16% Deposits +16% GHS’MM 0.77 487.85 0.73 2010 SPEED SERVICE SECURITY 420.9 1730 311.4 1200 0.41 0.38 187.1 Rapid response and quick access to advice, Service matters to our customers, whose Security is fundamental to customers. They need 725.6 information and products are important to all expectations have risen dramatically. to be able to trust us to manage their finances customers. responsibly. 95% of customers surveyed say that Service is both a qualitative and quantitative 2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016 Our ability to translate effective governance and measure: it has much to do with how customers security is the most important factor in choosing leverage employees’ competence to deliver swift feel and how long they have to stand in a queue. to bank with us. and appropriate responses to customers is a Our customers appreciate that we treat everyone significant competitive advantage. with respect and consideration. Net Loans and +6% Pre-tax ROE -53% Advances GHS’MM 42% 37% 1286 1212 34% 853.1 16% 433.7 2013 2014 2015 2016 2013 2014 2015 2016 8 9 Access Bank Ghana Plc - Annual Report 2016 Access Bank Ghana Plc - Annual Report 2016 Locations and Offices We are one of the foremost financial Our Nationwide Network Our International Network institutions in Ghana with a strong bias for excellent service delivery. We serve over 400,000 customers from 50 branch locations across all 10 regions of Ghana. Greater Accra Region Volta Region We have a presence within West and East Africa • Abeka Lapaz • Ho and the United Kingdom. The Bank also has business offices in the Republic of China, India, • Accra New Town Beginning its operations in 2009, the Bank provides Lebanon and the United Arab Emirates. universal banking services and is well acknowledged • Achimota Ashanti Region for its comprehensive range of financial product • Adjirigano • Adum offerings. The key business segments of the Bank are: Corporate Banking, Commercial • Airport • Alabar Banking, Business Banking, Personal Banking, • Alajo • Asafo United Kingdom Oil and Gas and Investment Banking. • Ashaiman • New Amakom Lebanon • Castle Road • Suame We take pride in our ability to add value to clients, • Dansoman leveraging our unique value proposition to provide innovative and proactive solutions across the entire • Darkuman Central Region economic value chain. In deploying products and • East Cantonments • Kasoa(2) services, the Bank adheres to responsible business • Ghana Airport Cargo Centre practices and readily commits resources to social (GACC) investments in realisation of its corporate social Eastern Region • Haatso responsibility convictions. • Koforidua • Kaneshie • Kaneshie Post Office Western Region • Kantamanto • Enchi China • Lashibi • Sefwi Wiaswso • Legon • Takoradi • Madina • Tarkwa United Gambia • Nima (2) Arab Emirates • North Industrial Area Brong-Ahafo Region • Odorkor • Techiman Sierra Leone • Okaishie India • Osu Oxford Street Northern Region Ghana • Osu Watson House • Tamale • Ring Road Central Rwanda • South Industrial Area Upper East Region • Spintex • Bolgatanga • Tema Community 1 Nigeria • Tema Industrial Area Upper West Region Democratic Republic of Congo • Tema Main • Wa • UPSA Zambia 10 11 Access Bank Ghana Plc - Annual Report 2016 Chairman’s Statement The Domestic Economy Partnerships Ghana’s experience in the past year was not at variance with that of other As a catalyst for socio-economic growth, Access Bank (Ghana) Plc continues emerging and developing economies. The country was already in its 2nd year to form strategic alliances with institutions in key sectors of the economy of a 3-year IMF programme that was expected to achieve macro-economic to drive growth. The year 2016 was no exception, as the Bank supported a stability for the country and engender a rebound to economic growth. The number of landmark projects in public-private partnerships (PPP), including: measures implemented to translate the expected growth are yet to manifest in real economic impact as pressures on inflation, lending rates and foreign • Part financing for a US$40 million facility to create one exchange continued. Political and economic observers attributed this to various of the largest cargo hubs in West Africa in a PPP macro-economic and power shortage challenges faced during the past few years, arrangement with Air Ghana Limited (AGL), Ghana Airport culminating in a 3.6% real GDP growth in 2016, the lowest in a decade, from a Company Limited (GACL) and Swissport. projected 4.2%. Latest available figures also indicate Year-End Debt – to - GDP ratio of 72% and a cash basis budget deficit of 8.7%, as compared to 5.1% in 2015. • The provision of over 400,000 multipurpose ID cards for students in senior secondary schools in a PPP with On the political front, Ghana enjoyed yet another peaceful General the Ministry of Education (MoE), Ghana Education Service Elections and transition to a new Administration in the 4th Republic. (GES), Conference of Heads of Assisted Secondary Esteemed Shareholders, The political stability the country has enjoyed over the past 25 years Schools and other private sector actors. continues to position Ghana as a beacon of democracy in the sub-region. It is indeed an honour to welcome you to the 9th Annual General Meeting of “your Bank has continued to build a your Bank. This meeting is also our first as a public company, having listed sustainable banking franchise over the on the Ghana Stock Exchange (“the Exchange”) as the first Ghanaian bank Recognition of Nigerian origin and the 11th Bank on the Exchange. The Banking Industry past year despite the hard realities of Our Bank recorded significant strides in its reputation index as it moved our economy.” On behalf of the Board of Directors, Management and Staff, I would like to The Banking industry has for the second year registered a negative up 39 places to become the “14th Most Respected Company” in Ghana report that your Bank has continued to build a sustainable banking franchise growth, estimated at 4.5%, for the 2016 financial year according to the at the 15th Edition of the Ghana Club 100 Awards. The ranking is an over the past year despite the hard realities of our economy. Bank of Ghana’s Financial Stability Report. Liquidity constraints as a evidence of the trust that our numerous customers and stakeholders result of legacy debts from the energy sector stifled lending activities.