First Ghana Savings turns fortunes around
First Ghana Savings and Loans Ltd, which recently restructured and revamped its operations with fresh capital, has overturned its loss position to modest profit at the end of the 2015 financial year.
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The savings and loans company posted GH¢694,562 at the end of last year from a loss of GH¢3.18 million at the end of 2014.
The Chairman of the Board of Directors, Mr John Kwaku Asamoah, who disclosed this at the company’s second annual general meeting in Accra, said the turnaround was as a result of prudent management practices which ensured that controllable costs were kept at bay, while enhancing the revenue lines.
The savings and loans company, which used to operate as a building financing society since 1956, revamped its operations a couple of years ago when the National Investment Bank (NIB) assumed a majority shareholding of the entity.
The shareholders have since injected fresh capital which now enables the bank to transact more businesses in its 10 branches across seven regions.
Results
Total deposits of First Ghana Savings and Loans (FGSL) grew by 38.17 per cent from GH¢12.8 million at the end of 2014 to GH¢17.69 million at the end of last year. That, in addition to a restated stated capital position from GH¢3 million to GH¢18 million, bolstered the company’s loans and advances book by 150.82 per cent. It increased from GH¢2.91 million to GH¢7.3 million within the period.
Assets also grew by 26.4 per cent to GH¢30.04 million, as the business increased investments in liquid securities.
Strategic direction
Mr Asamoah announced that the company had converted its 2015-2017 plan into a more aggressive strategic plan to end in 2018 by which time the company was expected to be on the path of sustainable profitability.
“This corporate strategic revision was done to take account of prevailing economic fundamentals. The company has put in place strategies to deal with loans recovery and other key result areas,” the board chairman stated.
Between now and next year, FGSL plans to automate its operations and open a few more branches to expand the footprint of the small and medium enterprises bank.
Shares
The board chairman debunked suggestions that the company was issuing new shares, adding that the preoccupation of the board and management was to continue to grow the business and put it back on the path of sustainable profitability.
“There is no board decision to sell new shares or do a private placement. We are not selling shares. We’ll continue to work to create value for the business and the shares you hold,” Mr Asamoah explained.
With requests from shareholders to expand reach, the board chairman said not only would the company do that but it would also upgrade banking halls and improve operational efficiency.
MD’s report
In his report, the Managing Director, Mr Patrick Tei Kwapong, said having examined the economic outlook for this year and subsequent ones, FGSL would vigorously implement its strategic plan to leverage its new capital base in achieving maximum growth and efficiency.
Mr Kwapong said the company had attached a lot of importance to loans recovery this year and had, therefore, put in elaborate recovery strategies to collect all past dues.