ACCESS BANK (GHANA) PLC ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018 Access Bank (Ghana) Plc Annual Report for the year ended 31 December 2018. CONTENTS Page Corporate information 1 Financial highlights 2 Report of the directors 3 – 4 Corporate governance report 5 – 8 Independent auditor’s report 9 – 14 Separate and consolidated financial statements: - Statement of comprehensive income 15 - Statement of financial position 16 - Statement of changes in equity 17 – 18 - Statement of cash flows 19 - Notes 20 – 86 Shareholder information 87 Other financial information 88 – 92 Valued Added Statement 93 Access Bank (Ghana) Plc Annual Report for the year ended 31 December 2018. CORPORATE INFORMATION Board of Directors Frank Beecham (Chairman) Olumide Olatunji (Managing Director: appointed 5 December 2018) Oludolapo Ogundimu Dela Selormey Abena Amoah Ernest Mintah Joyce Dimkpa Kolawole Ajimoko Kris Ifeanyi Njoku (Resigned 5 December 2018) Secretary Albert Kwame Gyan Auditor PricewaterhouseCoopers No. 12 Airport City UNA Home, 3rd Floor PMB CT 42, Cantonments Accra Registered office Access Bank (Ghana) Plc Starlets ’91 Road Opp. Accra Sports Stadium, P.O. Box GP 353 Osu Accra 1 Access Bank (Ghana) Plc Annual Report for the year ended 31 December 2018. FINANCIAL HIGHLIGHTS OF THE GROUP (In thousands of Ghana Cedis) 2018 2017 Revenue 524,143 466,351 Profit before income tax 71,788 58,597 Profit after income tax 49,846 29,599 Shareholders’ funds 632,761 469,758 Capital expenditure (including intangible assets) 22,785 27,225 Total assets 3,541,014 3,199,809 Earnings per share (basic and diluted) (Ghana pesewas) 28 25 Net assets per share (GH¢) 3.64 3.98 2 Access Bank (Ghana) Plc Annual Report for the year ended 31 December 2018. REPORT OF THE DIRECTORS The directors present their report together with the audited financial statements for the year ended 31 December 2018 in accordance with the Companies Act, 1963 (Act 179) and the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) which discloses the state of the affairs of the Bank and the Group. Statement of directors’ responsibility The directors are responsible for the preparation of financial statements for each financial year, which gives a true and fair view of the state of affairs of the Group and the profit or loss and cash flows for that period. In preparing these financial statements, the directors have selected suitable accounting policies and applied them consistently, made judgements and estimates that are reasonable and prudent and followed International Financial Reporting Standards and complied with the requirements of the Companies Act 1963 (Act 179) and the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930). The directors are responsible for ensuring that the Group keeps proper accounting records that disclose with reasonable accuracy at any time the financial position of the Group. The directors are also responsible for safeguarding the assets of the Group and taking reasonable steps for the prevention and detection of fraud and other irregularities. We have no plans or intentions, for example to dispose of the business or cease operations that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements. Financial report The financial results for the year ended 31 December 2018 are as follows; In thousands of Ghana Cedis The Group The Bank Profit before tax 71,788 71,788 from which is deducted: National fiscal stabilisation levy of 3,589 3,589 Income tax expense of 18,353 18,353 Leaving a net profit after tax of 49,846 49,846 when added to the balance brought forward on income surplus account of 44,319 43,298 less changes on initial application of IFRS 9 and other reserves of (11,034) (11,034) Leaving a balance of 33,285 32,264 less transfer to stated capital and cost thereon of (40,540) (40,540) less transfers to credit risk reserve (56,289) (56,289) less transfers to statutory reserve (24,923) (24,923) gives a deficit on income surplus account carried forward of (38,621) (39,642) In accordance with Section 34(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), an amount of GH¢24,923,000 was transferred to the statutory reserve fund from the income surplus account, bringing the cumulative balance on the statutory reserve fund to GH¢154,202,000 at the year end. 3 Access Bank (Ghana) Plc Annual Report for the year ended 31 December 2018. REPORT OF THE DIRECTORS (continued) The board of directors do not recommend the payment of dividend for the year ended 31 December 2018. Directors and their interests The present membership of the Board is set out on page 1. The directors’ interests in the issued ordinary shares of the Bank at 31 December 2018 is as follows: Name No. of shares Mr. Ogundimu Oludolapo 10,000 Directors' interests in contracts The directors have no material interest in contracts entered into by the Bank. Nature of business The Bank is authorised by Bank of Ghana to carry on the business of universal banking. Subsidiaries The Bank has two wholly owned subsidiaries; Big Ticket Holdings Limited (BTH) and Triumph Properties Limited (TPL). BTH operates as a leasing company. TPL is dormant. Holding company The Bank is a subsidiary of Access Bank Plc, a company incorporated in the Federal Republic of Nigeria and licensed to undertake banking and related services. Approval of the separate and consolidated financial statements The Board of Directors approved the separate and consolidated financial statements on 22 February 2019 and were signed on their behalf by: .......................................………...... ……....….............…………… Frank Beecham Olumide Olatunji Chairman Managing Director 4 Access Bank (Ghana) Plc Annual Report for the year ended 31 December 2018. CORPORATE GOVERNANCE REPORT The Bank is committed to implementing the best practice standards of corporate governance. It is governed under a framework that enables the Board to discharge its oversight functions while providing a strategic direction for the management. Board of Directors Composition The Board of Directors is made up of Seven (7) Non-Executive Directors and One (1) Executive Director, with a Non- Executive Chairman. The Board remains independent of management and carries out its functions in an objective and effective manner. Profile of the Board of Directors Frank W. K. Beecham, Chairman, 66 years Mr. Beecham holds an LLB from the University of Ghana and a Professional Qualifying Certificate from the Ghana school of Law. He was appointed as the Board Chairman on November 18, 2011. He is a lawyer by profession, a past president of the Ghana Bar Association and partner at Bram-Larbi, Beecham and Company. Mr. Beecham worked at Merchant Bank (Ghana) Limited (now known as Universal Merchant Bank) and its subsidiaries in 1977 where he served as General Manager (Corporate Business Development), Company Secretary, Legal Adviser and Registrar. Mr. Beecham was instrumental in setting up several companies by Merchant Bank including Merban Finance and Leasing Company, Universal Company Limited, and Universal Insurance Consultants Limited. Olumide Olatunji, Managing Director, 44 years Olumide Olatunji has over two decades of experience in banking, having held various high level positions in both Corporate and Commercial Banking and worked in various markets across the sub-region. In his most recent role as the Group Head of Commercial Banking Division in Access Bank Plc in Lagos, Olumide provided strong leadership in building and overseeing key strategic relationships for business success and growth. Prior to joining Access Bank in 2012, He worked as the Assistant General Manager for Corporate Banking in Skye Bank Plc in Nigeria and later was appointed as its pioneer Managing Director in Sierra Leone (2006-2011). During his tenor as Managing Director, Olumide is credited with the instrumental role he played in driving the Bank’s business and growth strategies to make it profitable. He is recognised as a result-oriented and astute banker after building an enviable career working for Guaranty Trust Bank Nigeria and Bond Bank Nigeria, where he garnered experience in the Commercial Banking, Public Sector and Corporate Banking divisions (1998-2005). He has also served on several boards including Access Bank Rwanda and Access Bank in DRC. Mr. Olatunji is an alumnus of Bangor Business School, Bangor University, Wales and University of Lagos, Nigeria. He holds an MBA from both universities and has gone through several management trainings including Orchestrating Winning Performance from International Institute for Management Development (IMD), Singapore. Joseph Vincent Dela Selormey, Non-Executive Director, 68 years Mr. Selormey, a Chartered Accountant and banker, holds an IMBA from Wisconsin International University, Ghana, and is a Fellow of the Institute of Chartered Accountants Ghana. He was appointed to the Board on February 11, 2013. He began his banking career at the Bank of Ghana in 1973 where he rose to the Head of Banking Supervision Department in 2010. Mr. Selormey led the implementation of the International Financial Reporting Standards by banks in Ghana. He also assisted in extending financial services to rural communities in Sierra Leone. Mr. Selormey currently works with Mark Trust as a member of the FinAScope Steering Committee. He is also a director of XDS Data Ghana Limited. 5 Access Bank (Ghana) Plc Annual Report for the year ended 31 December 2018. CORPORATE GOVERNANCE REPORT (continued) Abena Amoah, Non-Executive Director, 46 years Ms. Amoah is a financial and investment advisor and holds a BSc Administration in Accounting from the University of Ghana Business School and attended the University of Colorado’s Daniel College of Business. She was appointed to the Board in 2013. She has over 15 years of experience and began her career with Strategic African Securities.