- Deposits Power Bayport’s Rapid Growth as Profit Reaches GH¢127.6 million
Bayport Savings and Loans recorded a near-threefold increase in profit during the first nine months of 2026, as rapidly growing customer deposits financed a sharp expansion in lending and widened the institution’s interest margin.
Unaudited financial statements show profit after tax rising to GH¢127.65 million from GH¢44.62 million in the corresponding period of 2025, an increase of 186.1 per cent. Profit before tax climbed 181 per cent to GH¢182.64 million.
The results present Bayport as a specialist lender moving beyond incremental growth. Its balance sheet expanded by 57.2 per cent year on year to GH¢2.61 billion, driven principally by loans and advances, which rose 71.2 per cent to GH¢2.08 billion.
That acceleration is commercially significant. Lending now represents approximately 79.5 per cent of total assets, compared with 73 per cent a year earlier, showing that Bayport has placed a greater proportion of its balance sheet into its core income-generating activity.
The strategy produced a powerful earnings response. Interest and similar income increased 54.7 per cent to GH¢570.46 million, while interest expense rose by a comparatively modest 11.9 per cent to GH¢207.66 million. Consequently, net interest income almost doubled, advancing 98.2 per cent to GH¢362.80 million.
This divergence between income and funding costs is the central story in the accounts. Bayport expanded lending while changing the composition of its liabilities towards customer deposits, which doubled to GH¢1.62 billion from GH¢807.54 million.
Deposits consequently accounted for about 74.3 per cent of total liabilities, up from 58.5 per cent. Meanwhile, borrowings declined to GH¢430.52 million from GH¢464.27 million, and shareholder loans fell to GH¢32.77 million from GH¢58.87 million.
The shift could provide a more scalable funding base than continued dependence on wholesale borrowings or shareholder support. It also signals rising customer confidence in Bayport as a deposit-taking institution. Yet deposit growth carries obligations: customers expect liquidity, competitive pricing and immediate access to funds, even while the institution commits much of that money to longer-duration loans.
Bayport’s loans-to-deposits ratio improved to approximately 128.6 per cent from 150.3 per cent. Although the ratio remains elevated, its decline indicates that deposit mobilisation is catching up with lending and reducing the relative funding gap.
Growth, however, has not been costless. Non-interest expenses rose 69 per cent to GH¢58.06 million, personnel expenses increased 58.7 per cent to GH¢50.72 million, and other expenses advanced 45.4 per cent to GH¢58.72 million. These increases are substantial, but operating income grew faster, allowing more revenue to reach the bottom line.
Credit costs require closer attention. Net impairment losses on financial assets increased by 84.7 per cent to GH¢34.44 million. That rise is understandable against a loan book that expanded by more than GH¢863 million, but it remains a reminder that rapid credit growth can bring delayed risk. Loans originated during an expansion may initially perform well before weaknesses become visible through arrears and restructurings.
For now, the reported credit-quality indicator moved in the right direction. Bayport’s non-performing loans ratio fell to 8.1 per cent from 12.5 per cent. The improvement suggests that portfolio growth has not simply been achieved by tolerating weaker repayment performance.
Still, the interaction between the lower ratio and the larger portfolio deserves scrutiny. A falling percentage can coexist with a significant absolute stock of impaired loans when the denominator expands quickly. Management will therefore need to preserve underwriting standards, collections capacity and provisioning discipline as the newer loans mature.
Cash flow offers a second note of caution. Bayport generated GH¢46.11 million from operations before interest and tax payments, sharply below GH¢484.97 million in the comparable period. After paying interest and taxes, operating activities used GH¢44.91 million, compared with GH¢344.68 million generated a year earlier.
The difference largely reflects working-capital demands. Gross advances increased by GH¢754.44 million during the period, absorbing substantially more cash than the GH¢259.63 million increase recorded a year earlier. Customer deposits contributed GH¢549.27 million, but did not fully offset the lending outflow and other requirements.
This does not necessarily indicate operational weakness; lenders commonly consume cash when originating loans. It does, however, illustrate the liquidity consequences of growth. Profit measures income recognised under accounting rules, while cash flow shows the immediate funding required to support expansion.
Cash and cash equivalents remained sizeable at GH¢267.31 million, 9.9 per cent higher than in September 2025, although they declined by GH¢33.91 million from the beginning of 2026. The company reported no default in statutory liquidity requirements and no related sanctions.
Capital strengthened alongside the business. Total equity increased 55.3 per cent to GH¢438.33 million, supported by retained earnings of GH¢309.47 million. The capital adequacy ratio improved modestly to 12.9 per cent from 12.5 per cent, suggesting Bayport remained above its regulatory requirements while expanding.
The narrow improvement nevertheless matters. Asset growth of 57.2 per cent can consume capital quickly, particularly when concentrated in loans. Sustained earnings retention will therefore be important if Bayport intends to continue expanding without placing pressure on its regulatory cushion.
Basic earnings per share increased to 0.7253 pesewas from 0.2535 pesewas. The statements were prepared under International Financial Reporting Standards and applicable Ghanaian banking and company legislation. Bayport operates from 44 locations, comprising its head office, 10 service centres and 33 agency offices.
Its next phase will be judged not merely by how quickly the loan book grows, but by whether deposits remain stable, new borrowers continue repaying and operating cash generation recovers. The 2026 figures show a lender gaining scale and profitability. They also show why disciplined liquidity and credit management must now grow just as quickly as the balance sheet.
