SG-SSB Limited registered a strong growth in deposit mobilisation accompanied by a moderate evolution in credit for 2011, despite intense local competition.
As at the end of December 2011, the bank’s exposure to the State stood at GH¢144.5 million, an increase of 47.4 million over the previous year’s figure. The bank also invested GH¢20 million in commercial paper issued by a third party, while its gross credit to customers grew by 14.4 percent.
Gilbert Hie, Managing Director of SG-SSB, who made this known at “Facts behind the figures”, a forum organised by the Ghana Stock Exchange for listed companies in Accra yesterday, stated that with gross customer deposits increasing by 26.3 percent, SG-SSB’s fixed assets grew by 97.8 percent.
“Both retail and business banking recorded appreciable growth due to the increased proactiveness towards customers alongside the strategic approach in making credits more accessible and affordable to customers,”.
It would be recalled that the bank reduced its base rate from 24.5 percent to 22.5 percent.
Mr Hie continued that the bank reduced its risk coverage on non-performing loans from 99 percent to 72.7 percent, a difference of -26.3 percent, adding that it introduced a programme to modernize all its branches to SG standards.
“Our Accra Main, Asankragwa, Bolgatanga, Koforidua and Kumasi Central branches benefitted. This is an ongoing activity and 13 branches have been lined up for refurbishment this year. Also, to get closer to our customers, we opened new branches at Madina near Accra and Kejetia in Kumasi to bring our total branch network to 34 with 7 agencies.”
The MD furthermore said SG-SSB was appointed a primary dealer in government securities with authorization to participate in weekly auctions of securities from the Bank of Ghana.
“We also launched our bond trading business to access the secondary market in the same securities; launched our foreign exchange forwards and SWAPs which is traded with customers and the SG Corporate and Investment Banking in London and Paris,” he noted.
Touching on the bank’s outlook and challenges for 2012 and beyond, Mr Hie said there was a global positive outlook for Ghana given its high GDP growth target of 8 percent this year, but added that the high level of competition in the banking sector posed a threat to increasing market share.
He therefore advised Ghanaians to save with banks who have been able to meet the GH¢60 million capital base requirement by BoG to secure their investments.
Source: Daily Guide
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