Societe Generale Ghana PLC reported a 42.9% year-on-year increase in net profit for the first quarter of 2025, according to unaudited financial statements released this week.
The bank’s earnings rose to GH₵134.5 million, up from GH₵94.1 million during the same period last year, driven by stronger interest income and improved asset quality.
Key financial indicators showed positive momentum across operations. Net interest income grew 13% to GH₵305 million, while fee-based revenue jumped 40% to GH₵24.5 million. The bank’s trading activities nearly doubled their contribution, generating GH₵13.9 million compared to GH₵7 million in early 2024. These gains occurred alongside a notable reduction in non-performing loans, which fell from 22.58% to 17.49% of the portfolio.
The financial statements reveal a robust balance sheet position, with total assets expanding 18.9% to GH₵10.7 billion. Loan growth accounted for much of this increase, with advances to customers rising by GH₵919 million. Cash reserves more than doubled to GH₵3.96 billion, providing substantial liquidity buffers. Shareholders’ equity strengthened significantly to GH₵3.85 billion, supported by retained earnings and revaluation reserves.
Regulatory metrics remained healthy, with the capital adequacy ratio improving to 20.43%, well above minimum requirements. The bank maintained full compliance with statutory liquidity rules, reporting no defaults during the quarter. Directors emphasized continued adherence to International Financial Reporting Standards and Bank of Ghana guidelines in their accompanying statements.
Societe Generale Ghana’s performance comes amid mixed conditions in Ghana’s banking sector, where institutions have faced inflationary pressures and currency volatility. The bank’s ability to grow profitability while reducing credit risk suggests effective execution of its strategic priorities. Its capital position now ranks among the strongest in the industry, potentially positioning it for selective expansion as economic conditions stabilize.
The results may signal broader recovery trends in Ghana’s financial services sector, where lenders have been working to rebuild margins after recent macroeconomic challenges. With earnings per share rising to GH₵0.77 from GH₵0.53, Societe Generale Ghana appears well placed to deliver shareholder returns while supporting credit needs across key sectors of the economy. Market observers will watch for whether this positive start to the year can be sustained amid ongoing fiscal and monetary policy adjustments.
