Societe Generale Ghana posts strong Q2 2023 net profit of GHS 158m, up 42% YoY
In its latest financial report, Societe Generale Ghana revealed a notable rise in net profit, demonstrating resilience in the face of economic uncertainties.
The bank’s net profit at the end of Q2 2023 stood at GHS 158 million, marking an impressive increase from the previous year’s figure of GHS 111 million.
Driving this promising profitability was the notable growth in the bank’s net interest income, which experienced a substantial jump from GHS 226 million to GHS 389 million year-on-year.
Total assets witnessed a commendable expansion during the review period, soaring from GHS 5.8 billion to GHS 8.4 billion. This growth was primarily fueled by a surge in the bank’s loans and advances to customers, which reached an impressive GHS 3.3 billion, alongside robust cash and cash equivalents of GHS 2.2 billion.
On the other hand, the bank’s liabilities have experienced substantial growth driven mainly by customer deposits, rising to GHS 7.2 billion from GHS 4.7 billion year-on-year, with customer deposits peaking at GHS 5.1 billion at the end of Q2 2023.
However, concerns have been raised over the bank’s Capital Adequacy Ratio (CAR), which dipped to 14.8% at the end of Q2 2023, down from 19.4% in the same period the previous year.
Although the bank’s CAR marginally exceeds the industry’s average of 14% and the Bank of Ghana’s mandatory requirement of 13%, the decline could potentially impact the bank’s ability to navigate unforeseen risks.
The bank’s loan asset quality also witnessed some deterioration as non-performing loans surged from 7.2% to a concerning 14.8% year-on-year. This significant increase signals mounting bad loans and poses potential challenges to the bank’s overall financial health.
Despite the bank’s steady profit growth and commendable asset expansion, these emerging issues demand careful attention from Societe Generale Ghana’s management.
