SG Ghana to meet GHC400m minimum capital by September

Business News of Thursday, 19 July 2018

Source: thebftonline.com

2018-07-19

Societe Generale LogoSG Ghana is a primary dealer in Government bonds and the 6th player on the secondary bond market

Societe Generale Ghana has given indication it will, by September, meet the central bank’s GH400million minimum capital, which all banks are supposed to meet by December 2018.

Taking his turn at the Facts Behind the Figures at the Ghana Stock Exchange on Tuesday, Sionle Yeo, Managing Director of SG Ghana explained that shareholders have agreed to contribute funds towards meeting the regulatory requirement.

“Looking at the bank’s performance in growth and market share over the past three years, our stakeholders’ confidence in the economy is high and they have therefore committed to investing more resources to meet the stated capital”, Mr Yeo said, adding that “Ghana’s economy is doing well; it is a peaceful country with sound economic outlook across all sectors of the economy”.

With a Total Operating Income of over 17.4% accruing from increase in credit and investment income, commissions and fees as well as higher forex trading rates, SG Ghana made a net profit of GH90,507,000 in 2017, as against GH63, 899 in 2016, which is a 41.6% difference.

The bank, in 2017, recorded an impressive performance of 13.3% in the management of its Non Performing Loans (NPL) portfolio compared to a 21.6% banking Sector average ratio.

Mr. Yeo attributed these gains to the rigorous risk management framework underpinned by disciplined credit underwriting process, among other measures.

”We are working very hard to improve the quality of loan portfolio above current levels as our net loan growth stands at 49.7% against the market average of 6.8%”, he stated.

SG Ghana’s share price on the Ghana Stock Market also nearly doubled to 17%. “This is attributed to the Global move of stock improvement, investor confidence in the Bank, the Global market economy and the government’s investment into the stock exchange”.

There is, however, a decline of the share price from April 2018 because of the bonus paid to shareholders within the period.

As part of SG Ghana’s transformation, Mr. Yeo stated that the bank has committed to a corporate coverage transformation of the non-retail business sectors of its business.

The appointment of sector experts for enhanced customer service is key on the agenda, which is offering customers with bespoke financial solutions in a timely manner, he said.

In addition, he said SG Ghana has committed to Global Transaction Banking in the areas of Trade Finance, Finance Lease and cash management that support corporate coverage aimed at transactional banking solutions to corporate customers.

Mr. Yeo further said that the SG Ghana will continue to leverage on the SG Groupe’s expertise and experience in the provision of treasury services.

Currently, SG Ghana is a primary dealer in Government bonds and the 6th player on the secondary bond market.

“We are looking at providing FX purchase and sales as well as derivative instruments like Swaps (currency and interest rates), and Forwards,” Mr. Yeo stated.

“We are also a lead in arranging and participate in big ticket transactions that require syndications and risk sharing”, Mr. Yeo stated, adding that between 2009 and 2018, SG Ghana has financed government projects totaling US$653m.

“We will continue to be a credible partner to government in the execution of its developmental agenda,” Mr. Yeo emphasised.

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