Societe Generale Ghana Sees 18.6% Increase in Total Assets for Q3 2024

Societe Generale Ghana Plc recorded an appreciable rise in total assets for the third quarter of 2024, underscoring the bank’s solid asset expansion driven primarily by increased cash holdings and lending activities, despite a contraction in investment securities and a marked rise in non-performing loans (NPLs).

Total assets of the bank surged by 18.6% year-on-year, from GHS 8.1 billion in Q3 2023 to GHS 9.7 billion in Q3 2024, adding GHS 1.6 billion to the bank’s asset base.

This growth trajectory was largely propelled by a 110% jump in cash and cash equivalents, which stood at GHS 2.9 billion, and a 33.1% increase in loans and advances to customers, reaching GHS 4.8 billion.

Investment securities of the bank, however, took a significant hit, declining by 53.8% to GHS 1.1 billion.

Liabilities of Societe Generale saw a 16.1% increase within the review period, with total liabilities ending Q3 2024 at GHS 7.9 billion, up from GHS 6.8 billion in Q3 2023.

Profit-after-tax was up slightly by 0.71% year-on-year, closing the quarter at GHS 274 million, compared to GHS 272 million in the same period last year, indicating a stable bottom line for the bank.

Capital Adequacy Ratio (CAR) of the French bank within the review period saw a marginal increase, standing at 15.39% in Q3 2024, up from 15.13% in Q3 2023, reinforcing the bank’s capital standing.

Yet, Societe Generale Ghana faced loan asset quality challenges as its NPLs spiked to 19.05%, up from 12.43%, reflecting the need for reinforced loan recovery efforts.

Addressing the rising NPL ratio will require the bank to bolster its recovery mechanisms to safeguard its loan asset quality and limit further deterioration.

Source:norvanreports.com