Societe General (SG) Bank Ghana Limited is taking steps to raise an additional GHS165 million to meet the GHS400 million minimum capital requirement of the Bank of Ghana (BoG).
Commercial banks in Ghana are required to meet the minimum capital requirement target by December 31, 2018, and Societe General Ghana has already raised GHS235 million in that regard.
The French bank is working to top-up with GHS165 million by September 2018 ahead of the December deadline.
Managing Director of SG Ghana, Sionle Yeo made this known on Tuesday, July 17, in Accra when SG Bank Ghana took its turn at the Ghana Stock Exchange’s ‘Facts Behind The Figures’ meeting.
The meeting, the first of SG Ghana in nearly three years, was used to explain the bank’s operations, achievements, plans and challenges over the last few years, especially since 2015.
Mr Yeo spoke about his recapitalization plan and steps that the bank was taking to make it successful, noting that the bank has so far raised GHS235 million.
He said, “We decided to go for a two-step approach to increase our capital to the new minimum requirements. We started with a bonus issue transforming our GHS97 million from our income surplus to the stated capital so now we are just GHS165 million short of the final goal.”
He added, “We’ve put everything in place and we are just about to launch the rights issue and the idea is to have it completed by September.”
He expressed faith in the bank’s ability to attain its goal, saying “We know that it will be met because our main shareholders have fully committed to contribute to this capital increase.”
Explaining further, Mr Yeo said, “For us it is a very strong signal from our shareholders. It means that our shareholders believe in this country (Ghana) because they are coming with long-term investments, meaning they are fully confident in this country and they are fully confident in this bank.”
Success Story
He also seized the opportunity to announce the bank’s success in transforming its business operations since 2015.
He explained the four pillars which define the holistic transformation programme: developing innovative products and channels and fostering digitalization, improving operational efficiency, fostering customer intimacy, and developing human capital through specialized employee training.
After recording declining market share for years and the reality that more than 50 percent of their staff were over 50 years old, Societe Generale Ghana took steps to improve its profits and customer satisfaction.
A survey of 31 Ghanaian banks has shown that the SG Ghana’s market share with respect to loans has increased. It’s ranked third currently from sixth place in 2015. In terms of deposits, it has moved from 11th in 2015 to seventh presently.
These successes, Yeo said, could be attributed to the company’s efforts at improve its standing.
He disclosed that as part of efforts to save cost and contribute to environmental sustainability, the bank has initiated a solar plant project, which is a 267 Kwp Hybrid Pv Plant located above the car park at its head office to save GH¢600,000 annually. It would significantly cut carbon emissions.
According to him, SG Ghana is also introducing a New Retail Transformation Drive, which will bring products and services to the doorsteps of customers in the form of a fully-equipped branch on wheels.
He added that the Transformation Drive will also create a new standard for SG Ghana’s branch layout, including visible welcome desks, queue management system, and a digital corner within branches that customers can access banking services on a 24/7 basis.
Source: Ghanaweb.com
