Societe Generale Ghana PLC saw its full-year profit after tax fall by 28 percent to GH¢397 million, as the lender felt the squeeze from a rapidly stabilising economy marked by falling interest rates and a sharp rebound of the Ghanaian cedi.
The bank’s performance for the year ended December 31, 2025, stands in stark contrast to the previous year, when it posted a profit after tax of GH¢551.3 million. The shift highlights the banking sector’s transition from an era of exceptional, inflation-driven gains to a more normalised operating environment.
Total operating income dipped by 6.8 percent to GH¢1.36 billion, down from GH¢1.46 billion in 2024. This moderation was primarily driven by a steep 45.3 percent contraction in net income from other financial instruments and a significant swing in other operating income, which recorded a loss of GH¢59.8 million compared to a gain of GH¢138.9 million the previous year. A bright spot was net trading income, which more than doubled to GH¢122.3 million, providing a crucial buffer against the pressures elsewhere.
From Exceptional Gains to Sustainable Growth
In his review accompanying the annual report, Managing Director Hakim Ouzzani described 2025 as a pivotal year of transition. “In 2025, Ghana’s economy showed marked improvement, with a sharp decline in inflation, easing interest rates, and a stronger cedi,” Mr. Ouzzani stated. “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.”
Board Chair Margaret Boateng Sekyere elaborated on the external factors, specifically highlighting the currency’s remarkable turnaround. “As at the end of December 2025, the cedi recorded strongly against the major trading currencies, appreciating on a year-on-year basis to [a rate of] USD/GHS 10.45,” she noted.
Despite the policy rate tumbling from 27 percent to 18 percent over the year, the bank’s core earnings engine—net interest income—remained resilient, edging up by 5.7 percent to GH¢1.19 billion. This was attributed to disciplined balance sheet management that helped preserve margins even as returns on investments moderated.
Asset Quality Improves, Costs Surge
A key highlight was a dramatic 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 turnaround reflects successful recoveries, including GH¢8.9 million from the final liquidation of YUP Ghana’s indebtedness, coupled with stricter credit discipline across the loan book.
However, this positive development was offset by a sharp 50.8 percent surge in operating expenses, which hit GH¢774.9 million. The increase was driven by a 162.6 percent spike in general expenses, including higher IT support costs and professional fees. Personnel expenses also rose by 12.6 percent to GH¢275.6 million, reflecting investments in staff development and salary adjustments.
Balance Sheet Adjusts to Cedi Strength
The bank’s total assets contracted slightly to GH¢9.68 billion from GH¢10.40 billion in 2024, a reduction largely attributed to the translation effect of the cedi’s appreciation on foreign currency-denominated assets. Reflecting a cautious lending environment, loans and advances to customers decreased by 10.4 percent to GH¢4.49 billion, while customer deposits also dipped by 6.1 percent to GH¢5.84 billion.
Despite the lower profit, the bank’s financial health remains robust. Shareholders’ funds increased to GH¢2.60 billion, supported by retained earnings of GH¢1.15 billion. The Capital Adequacy Ratio (CAR) strengthened to 23.4 percent, well above the regulatory minimum of 13 percent, underscoring a strong buffer against potential shocks.
Investor confidence in the bank’s long-term strategy remained high, with the share price surging by 199 percent over the year, from GH¢1.50 to GH¢44.49.
In line with its commitment to shareholder returns, the board has recommended a final dividend of GH¢0.34 per share, subject to regulatory approval. 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 said.
