Societe Generale Ghana PLC recorded a profit after tax of GH¢397 million for the year ended December 31, 2025, representing a 28 per cent decline from the GH¢551.3 million posted in the previous year, as the bank navigated a sharply changing macroeconomic landscape characterised by falling interest rates and a strong currency rebound.
The bank’s total operating income dipped by 6.8 percent to GH¢1.36 billion, compared to GH¢1.46 billion in 2024. This moderation was largely driven by a 45.3 per cent contraction in net income from other financial instruments and a 143 per cent swing in other operating income, which turned into a loss of GH¢59.8 million from a gain of GH¢138.9 million the prior year. Net trading income, however, more than doubled to GH¢122.3 million, providing a crucial buffer against pressures elsewhere.
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Managing Director Hakim Ouzzani, in his review accompanying the annual report, described the year as one of transition for the banking sector. “In 2025, Ghana’s economy showed marked improvement, with sharp decline in inflation, easing interest rates, and a stronger cedi. Within the banking sector, this represented a shift from the exceptional gains of a high-interest-rate environment to more normalized conditions, emphasizing sustainable growth, operational efficiency, and asset quality,” he stated.
Board Chair Margaret Boateng Sekyere added context on the external factors at play, noting that the Ghana cedi recorded a strong recovery during the year. “As at end of December 2025, the cedi recorded strongly against the major trading currencies, appreciating on year-on-year basis to USD/GHS 10.45,” she noted in her statement.
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Net interest income, the bank’s core earnings engine, remained relatively resilient, edging up by 5.7 per cent to GH¢1.19 billion from GH¢1.12 billion, despite the sharp decline in policy rates from 27 per cent to 18 percent over the course of the year. This performance was underpinned by disciplined balance sheet management, which helped preserve margins even as interest income on placements and investments moderated.
A notable highlight was the significant improvement in asset quality. The bank recorded a net impairment gain of GH¢33.6 million, a stark reversal from the GH¢103.3 million impairment charge taken in 2024. This improvement reflects recoveries, including a GH¢8.9 million recovery from the final liquidation of YUP Ghana’s indebtedness, as well as stricter credit discipline across the loan book.
Operating expenses, however, grew sharply by 50.8 percent to GH¢774.9 million, driven largely by a 162.6 per cent surge in general expenses, which included higher IT support costs and professional fees. Personnel expenses also rose by 12.6 per cent to GH¢275.6 million, reflecting investment in staff development and salary adjustments.
The bank’s balance sheet contracted slightly, with total assets declining to GH¢9.68 billion from GH¢10.40 billion in 2024. This reduction was primarily due to the translation effect of the cedi’s appreciation on foreign currency-denominated assets. Loans and advances to customers decreased by 10.4 per cent to GH¢4.49 billion, while deposits from customers also dipped by 6.1 per cent to GH¢5.84 billion.
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Despite the lower profit outturn, the bank’s capital position remained robust. Shareholders’ funds increased to GH¢2.60 billion, supported by retained earnings of GH¢1.15 billion and a statutory reserve of GH¢544.5 million. The capital adequacy ratio strengthened to 23.4 percent, well above the regulatory minimum of 13 percent, even after accounting for the full implementation of IFRS 9 expected credit loss provisions without the reliefs that were applied in the prior year’s calculation.
The bank’s share price performed exceptionally well during the year, increasing by 199 percent from GH¢1.50 at the beginning of the year to GH¢44.49 at year-end, reflecting strong investor confidence in the bank’s long-term strategy and growth trajectory.
In line with its commitment to shareholder returns, the board has recommended a final dividend of GH¢0.34 per share, though this remains subject to regulatory approval. The dividend, if approved, will be paid out of the retained earnings of GH¢1.15 billion carried forward into 2026.
Looking ahead, Mr Ouzzani expressed confidence in the bank’s positioning. “With a Return on Equity of 15.1 per cent, shareholders’ funds increasing, and strong capital and liquidity buffers, your bank is well positioned to support customers and expand lending as private-sector activity continues to recover,” he stated.
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