Stanbic Bank Ghana says it expects to grow its loan book by between 35-40 percent this year, targetting sectors such as manufacturing, agriculture, financial services and infrastructure.

“Our loan book this year is expected to grow by between 35 to 40 percent, and from the way things are going I am sure we can meet those numbers,” Managing Director Alhassan Andani said in an interview.

“Since the bank is a universal one, we are targetting every aspect of the economy; including manufacturing, agriculture, financial services and infrastructure.”

Last year, the bank’s loans and advances to customers increased by 31 percent to GH¢659.87million, while customer deposits doubled from the previous year to GH¢1.28billion. Credit impairment charges fell by 8 percent to GH¢12.23million.

The bank posted a profit after tax of GH¢56.9million in 2012, an increase of 97 percent from 2011.

Mr. Andani said Stanbic experienced a significant improvement in the quality of its loan portfolio, the result of a deliberate strategy to focus on priority segments and key client sets.

He said oil and gas as well as infrastructure present tremendous opportunities for banks, which must find the necessary capital and skills to invest in these areas.

“The wide infrastructure financing gap presents an array of opportunities for banks. Ghana is a growing economy and the economy cannot grow and prosper without the support of infrastructure. So where there is the need and there is incremental value to be created, then there are opportunities for banks.”

On the high interest rates on bank lending, Andani said banks are “price-takers” and do not have control over all the factors that determine the cost of credit -- which the Bank of Ghana (BoG) said averaged 27.1 percent per annum in April.

“Even though banks rent out money and our rent is called interest rates, we are not the ones that naturally create it. We have an element in it -- which is all of our operating costs, risk measures and profit margins -- but that is just a part of it.

There is a core of it, which is what we take from the market and build into our own business because we are modelled to lend.”