"Societe Generale defies odds; records GHS 108m profit despite debt restructuring programme"

" Societe Generale defies odds; records GHS 108m profit despite debt restructuring programme \r\n\r\nSociete Generale Ghana has defied the odds in a challenging financial landscape to post a net profit of GHS 108m ($18.6m) at the end of the 2022 financial year. This is in contrast to many other banks in the country that have recorded losses as a result of the government\u2019s domestic debt exchange programme.\r\n\r\nThe bank's performance is particularly notable in light of the significant net impairment costs of GHS 284m recorded on its financial assets, primarily investments. Despite this, Societe Generale Ghana managed to increase its total assets value from GHS 5.4bn in the previous year to GHS 6.5bn at the end of 2022.\r\n\r\nThe bank's success is largely attributable to the growth in its cash and cash equivalents, which surged from GHS 963m in 2021 to GHS 1.9bn at the end of 2022. Deposits from customers also increased significantly, accounting for GHS 4.2bn of the bank's total liabilities of GHS 5.5bn, up from GHS 4.4bn in the previous year.\r\n\r\nDespite this positive performance, Societe Generale Ghana's Capital Adequacy Ratio (CAR) decreased from 22.38% in 2021 to 16% at the end of 2022. This is a cause for concern and may indicate that the bank is not holding sufficient capital to cushion itself against potential losses.\r\n\r\nIn addition, the bank's loan asset quality worsened, with non-performing loans rising from 7.58% at the end of 2021 to 13.48% at the end of 2022. This suggests that the bank's risk management policies may need to be reviewed and tightened in order to ensure sustained profitability and financial stability.\r\n\r\nSociete Generale Ghana's net profit achievement is a remarkable feat, particularly given the challenging economic environment in which it operates. The bank has demonstrated resilience in the face of adversity, and its success may serve as a blueprint for other financial institutions seeking to thrive in a difficult economic climate.\r\n\r\nNevertheless, the decline in the bank's CAR and the worsening loan asset quality are areas of concern that must be addressed in order to ensure the bank's long-term stability and profitability. As the bank continues to navigate the uncertain financial landscape in Ghana, it must remain vigilant and responsive to emerging risks in order to maintain its competitive edge and safeguard the interests of its shareholders and customers alike.\r\n\r\n \r\n\r\n "

"Societe Generale defies odds; records GHS 108m profit despite debt restructuring programme"

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