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Société Générale Ghana (SGG) has posted a profit after tax of $30.5mn (GHS424mn) for the fiscal year 2023, marking a 290% growth despite economic headwinds and challenges in the banking sector.
Ghana’s banking industry as a whole the previous year faced liquidity and capital challenges after the implementation of the Domestic Debt Exchange Programme (DDEP), where the government exchanged bonds worth $6.8bn (GHS82bn) for new ones at reduced rates and extended tenors. Other banks have posted comparable year on year results.
SGG’s said its performance was underscored by increases in investments and deposits, resulting in a liquidity growth from 88% to 105% compared to the previous year.
Bank managing director Hakim Ouzzani said that despite Ghana’s economic challenges, the bank witnessed a 29% increase in total assets. He attributed the return on equity of 28%, a jump from 10% in 2022, to efficient cost management and reduced net cost of risk on sovereign facilities.
Speaking at the bank’s annual general meeting (AGM) in Accra, Ouzzani expressed cautious optimism for 2024, acknowledging ongoing uncertainties such as the government’s external debt restructuring and budgetary constraints affecting economic growth projections.
Touching on speculation of the bank’s potential exit from the Ghanaian market, Ouzzani insisted that such reports were unsubstantiated. He added that since September 2023 the group had been conducting a business review of its portfolios.
“In light of recent speculations, it’s important to note that these are mere rumours, and it’s not within the SSG Group’s policy to respond to rumours,” Ouzzani said, according to Joy News, reassuring shareholders of the bank’s commitment to its operations in Ghana.
Source: Daily Mail GH
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