SSB Bank Limited last year 2001 made a total profit before tax of ?158.1 billion as against ?125.2 billion in 2000 showing an increase of 26.3%. This was in spite of the reduction in interest rates and restructuring of short-term government debt through the Government of Ghana Index-Linked Bonds (GGILBs) which had the effect of further reducing income from short-term investments.

Speaking at this year's Annual General Meeting (AGM) of the SSB Bank in Accra yesterday, the Chairman of the Board of Directors, Mr. F.E.Y. Attipoe announced to shareholders that Shareholders' Funds also increased from ?168.6 bn to ?219.9 bn representing an increase of 30.4%.

He disclosed that the Board has recommended a Special Anniversary Dividend of ?120 per share bringing the final dividend to 450% per share. The total dividend for 2001 is therefore ?600 per share representing a 50% increase over last year's dividend of ?400.

"Against the background of an increase in profit after tax of 18.5% for the year, I believe you will all agree with me that this increase is very generous. The payout ratio of 44% also compares very favourably with our dividend policy of minimum 25%."

He said while total operating income increased by about 21%, total operating expenses increased by less than 5% because of the measures taken by the bank to ensure effective cost containment in view of the prospect of lower margins and slowed-down growth in income.

He said the share price appreciated 7% in 2001 from ?2,050 per share at the beginning of January and ended the year at ?2,200. He said he hopes that with the fall in interest rates on government securities, investors will show more interest in alternative investments such as shares and that the Bank's shares will appreciate as a result.

Mr. Attipoe said it is expected that the adoption of the Heavily Indebted Poor Country (HIPC) initiative by the government will lessen the pressure on the country's debt servicing obligations so that the macro-economic stability which has been achieved would be consolidated.

The Board Chairman said the environment of falling interest rates, though welcome as a necessary stimulant to economic development and growth also presents the Bank with the challenge of maintaining reasonable operating margins to ensure acceptable levels of income growth. He assured the shareholders that the key to a good operational performance will continue to be the efficient management of the balance sheet, human resources, service quality and technology for competitive advantage.

Mr. Attipoe said trade in the country last year was more favourable than in 2000 as a result of tight monetary and fiscal policies the economy witnessed leading to macro-economic stability.

The Managing Director of SSB Bank Limited, Mr. P. Kojo Thompson said the Bank's total deposits increased from ?702.5 billion at the end of year 2000 to ?765.5 billion at the end of 2001 representing an increased of 9%. He said the Bank's total assets grew by ?148.4 billion representing 12%.

Mr. Thompson later told journalists that in his view Sika Card is ahead of ATM, and other cards would be re-launched this year with enhanced features. He said soon the Bank would introduce and install ATMs at vantage locations and upgrade some of its branches. He added that new branches would be established in the year.