Accra (Greater Accra) 24 March '99

Social Security Bank Limited said on Tuesday that it will pay 14.2 billion cedis, representing 47 per cent of net profit after tax, as dividend to shareholders for the year ending December 31st 1998. The dividend of 200 cedis per share is 33 per cent higher than that of the previous year. The bank's policy is to pay a minimum dividend of 25 per cent of net profit. Mr Francis E.Y Attipoe, Chairman of SSB Bank, said this at the fourth annual general meeting of the bank in Accra. The bank's net operating profit before tax went up by 21 per cent from 50.8 billion cedis in 1997 to 61.8 billion cedis in 1998. However, because of cost of re-organisation, profit after tax for 1998 was 30 billion cedis compared with 32.7 billion cedis for 1997. On outlook for this year, Mr Attipoe said the bank's electronic purse, the Sika Card which was introduced to the cocoa growing communities in the 1998, has caught on and holds promise as a fund mobilisation product. The bank said it has exceeded by almost 100 per cent its projection of Sika Card sales in the last two years. To further its business objectives, the bank is installing a wide area network linking all their branches, Mr Attipoe said. "The result will be a significant improvement in customer service as well as provision of timely and reliable data to management". Mr Pryce Kojo Thompson, Managing Director of the bank, said total deposits increased by 30 per cent from 328 billion cedis in 1997 to 425.2 billion cedis in 1998. By this increase SSB maintained its market share of 15 per cent of overall market deposit which includes both the domestic and foreign markets. The bank ended the year with a total outstanding credit of 161.2 billion cedis. This is attributed to efforts to make the bank nurture its credit portfolio since interest rates exceeded those of government securities. "Sectors that benefited from this increase include commerce and finance, manufacturing, construction, utilities, mining, quarrying and agriculture. Mr Thompson said SSB has embarked on a comprehensive staff rationalisation programme that includes merging of some departments and units for better focus as well as phasing out and out-sourcing most of the non-core activities of the bank.