Société Générale Ghana (SGG) achieved a profit after tax of GH¢424 million in 2023, a growth of 290 percent despite the challenges facing the economy and the banking industry.
The bank also reported growth in investments and deposits, leading to a liquidity increase from 88 percent in the previous year to 105 percent in 2023.
Its Managing Director, Hakim Ouzzani, said the outstanding performance in 2023 is crucial for the bank’s future, especially considering it was the year following the Domestic Debt Exchange Programme (DDEP).
He noted that despite Ghana’s slower-than-projected path to recovery compounded by the introduction of new fiscal policies aligning with IMF objectives which further exacerbated the nation’s state, the bank’s total assets saw a significant increase of 29 percent.
The efficient management of costs and the decrease in the net cost of risk on sovereign facilities collectively drove the return on equity for the year to 28 percent, a significant increase from the 10 percent reported in 2022, he said.
“Despite the uncertainties and the difficult business environment, we are happy to report another stellar year in terms of revenue and profitability, interest income, commission and fees and net banking income. These results we achieved thanks to elevated interest rates and well-controlled cost of risk. On the balance sheet, we experienced an increase in both loans and deposits.
“We look forward to 2024 with cautious optimism, being fully aware that the government is yet to finalise the restructuring of its external debt, a condition to unlocking additional funding from the International Monetary Fund. This, among other budgetary constraints, will hamper economic growths projected at 3.5 percent,” he said.
The MD made these remarks at the banks 44th annual general meeting (AGM) held at it’s head office in Accra.
Committed to Ghana
Despite being impressed with the performance report, shareholders raised concerns about recent news reports suggesting the bank’s exit from the Ghanaian market.
In response, the Managing Director emphasised that the news remains a rumour, stating that the board has not been informed of any such decision by the international management.
“We are aware of the news over the past few days, but these are just rumours and it’s not in the SSG Group’s position to respond to rumours. Since September 2023, the group has been on a business review of its portfolios. However, it’s important to clarify that the news circulating in the media is not by SG Ghana,” he said.
