Société Générale posts 290% profit after taxes

…denies exit rumors

By Ernest Bako WUBONTO

Société Générale Ghana (SGG) achieved an after-tax profit 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 an increase in liquidity from 88 percent in the previous year to 105 percent in 2023.

Its CEO, Hakim Ouzzani, said the excellent performance in 2023 is crucial for the bank’s future, especially considering it was the year after the Domestic Debt Swap Program (DDEP).

He noted that despite Ghana’s slower than projected recovery path, compounded by the introduction of new fiscal policies aligned with IMF targets that further exacerbated the state of the nation, the bank’s total assets saw a significant increase from 29 percent.

Efficient cost management and declining net cost of sovereign lines risk collectively boosted return on equity for the year to 28 percent, a significant increase from the 10 percent reported in 2022, it said.

“Despite the uncertainties and difficult business environment, we are happy to report another stellar year in terms of revenue and profitability, interest income, commissions and fees and net banking income. We achieved these results thanks to high interest rates and a 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 has yet to finalize the restructuring of its external debt, a condition for unlocking additional financing from the International Monetary Fund. This, among other budget constraints, will hamper the projected 3.5 percent economic growth,” he said.

The CEO made these remarks at the bank’s 44th annual general meeting (AGM) held at its head office in Accra.

Committed to Ghana

Despite being impressed with the performance report, shareholders expressed concern over recent news suggesting the bank’s exit from the Ghanaian market.

The CEO responded that the news remains a rumor and stated that the international management has not informed the board of directors of any such decision.

“We are aware of the news in recent days, but they are just rumors and SSG Group is not in a position to respond to the rumours. Since September 2023, the group has been undergoing a business review of its portfolios. However, it is important to clarify that the news circulating in the media is not from SG Ghana,” he said.