Societe Generale wants big ticket transactions …increases stated capital to GH¢140m

 

Societe Generale Bank is hoping to rub shoulders with the big players in the banking sector in undertaking big ticket transactions with rights issue to the tune of GH¢41million which would raise the bank’s stated capital to a minimum of GH¢140million.

Shareholders of the bank at its recent annual generale meeting have, by a special resolution, approved the bank’s plan to increase its stated capital.Board Chairman of the bank, Kofi Ampim, explained that the purpose of the rights issue would enable the bank develop and grow its business and undertake larger volume transactions in line with the growth and competitive strategy of the bank.

“The proposed rights issue will improve the Bank’s Single Obligor Limits and enable SG Ghana to better serve the needs of its clients in a competitive environment.

An improved Single Obligor Limit will ensure that the bank implements and achieves its growth and competitive strategy hence improving its current market share, 3.36percent for loans and advances as of December 2015,” he said.

He added that the rights issue will also strengthen the balance sheet of the bank by switching from the subordinated loan (US$12million) to equity and enhance the profitability of the bank by first, decreasing the interest burden of the bank estimated at GH¢4million on an annual basis and secondly stop the revaluation losses on the bank’s profit and loss due to the volatility of the cedi (end of 2015 losses were GH¢6.3million.

The bank posted a profit before tax of GH¢64.4million and a profit after tax of GH¢44.6million in 2015 whiles net banking income increased by 11.4percent and current operating expenses grew by 26.4percent.

The bank’s shareholders’ Funds increased from GH¢222million to GH¢244million representing a progression of 18.9percent.

In line with the bank’s regulation, a dividend of GH¢0.076 per share will be paid to shareholders which represents 62.6percent of the profit after tax.Sionle Yeo, Managing Director of the bank, stated that the bank in 2016 will be reorganised to become more sales-oriented, more customer-friendly and provide more comfort to the sale staff.

“There will be separate cubicles for all Universal Relationship Officers and dedicated ‘privileged spaces’ for affluent and mass affluent customers, together with automatic queue management systems and digital corners in all branches.

“We will also equip more urban areas and more medium sized towns with offsite solar ATMs as well as providing Light Mobile Branches to the sales teams to improve their efficiency in prospection and for on-site customer on-boarding,” he added.

The Board Chairman noted that in looking forward, the bank in 2016 will see the year as one of transformation with new systems and new processes to be put in place with a view to increasing the bank’s market share.

“The aim is to achieve sustained organic growth.”

 

 

Source: B&FT Online