Société Générale Ghana Plc has reported a profit after tax of GHS 109 million for the year 2022, representing a decrease compared to the GHS 184 million recorded in 2021. This decline in profit margin is attributed to the implementation of the Domestic Debt Exchange Programme by the government, which has impacted the profitability of the banking sector in Ghana. Despite the challenging year, the bank’s operating income increased by 26 percent, while operating expenses rose by 9 percent.
The Managing Director of Société Générale Ghana, Hakim Ouzzani, highlighted the bank’s overall performance, acknowledging the decrease in profit but emphasizing the context of Ghana and considering it a good performance. The bank recorded a profit before tax of GHS 168 million compared to GHS 282 million in the previous year.
During the Facts behind the Figures series organized by the Ghana Stock Exchange, the Managing Director of the exchange, Abena Amoah, stressed the importance of providing a platform for investors to interact with listed companies. This interaction helps strengthen market confidence and contributes to economic growth. Amoah encouraged Société Générale Ghana to utilize its trading activities to raise capital for environmentally friendly business initiatives, promoting sustainable practices.
Opinion: The decrease in profit margin for Société Générale Ghana reflects the challenges faced by the banking sector in Ghana due to the implementation of the Domestic Debt Exchange Programme. It is important for banks to adapt to these changes and find ways to maintain profitability in a changing regulatory and economic environment. Engaging with investors and providing transparency through platforms like the Facts behind the Figures series can help build trust and attract investment. Additionally, embracing sustainable practices and exploring green business opportunities can contribute to long-term growth and resilience in the banking sector.