BEIGE Capital consolidates growth : As half year posts 86% higher results
Beige Capital Savings and Loans Ltd (BCSL) has recorded an impressive growth in its half year results, posting 86.55 per cent growth over the same period last year, as the company continues to consolidate its market leadership in the tier two category of banks in Ghana.
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BEIGE Capital recorded an interest income of GH¢136 million, as of the end of June, compared to the GH¢72.97 million recorded for the same period last year.
The Chief Executive Officer of the company, Mr Mike Nyinaku, said: "we are beginning to experience relative stability in the pattern of our growth and performance and are thus more confident about the prospects for the future."
The headline revenue was driven by an increased lending in key customer segments as well as continued emphasis on the creation of quality and liquid risk assets.
During the year, BCSL commenced an active introduction of government securities as a component of the mix of assets it would invest in. This was to ensure that the risk portfolio of the institution is evenly balanced in favour of improved liquidity.
Total operating costs for the period amounted to GH¢25.75m and personnel cost accounted for about 34.40 per cent of this. Other core operating costs, including ICT, energy and equipment maintenance also made up about 25 per cent of operating expense for the period.
Year to date Profit Before Tax (PBT) was GH¢11.5 million, representing an increase of 202 per cent when compared to the figure recorded for the same period in 2015.
Total assets went up from the 2015 position of GH¢818 million to GH¢1.067 billion, an increase of 30.9 per cent.
As part of the growth, the company's loans and advances to customers grew by 45.50 per cent from comparative June 2015 position of GH¢329 million to GH¢478.8 million. At the end of June, 2016, BCSL's deposit portfolio stood at GH¢842.6 million, an increase of 36 per cent of the December 2015 position. Against comparative figures for June 2015, the institution's deposits portfolio grew by 62 per cent. Net Assets ended the period with GH¢145.1 million.
The increase recorded in assets was influenced largely by the growth recorded in the bank's deposit book.
Owing to the consistency in BCSL's performance year on year, the institution has gained the reputation as a safe place for deposits and investments. This has translated into increased patronage of the institution's products.
Mr Nyinaku was confident about ending the year in a better position than projected at the beginning of the year.
"The year 2016 being an election year, with its usual uncertainties, is also recovering from a tough 2015that was bedeviled with power crises, high interest rates and fast declining exchange rates.
Notwithstanding these challenges, our focus remains on increasing our footprints in the industry at our level."
