First Ghana Savings implements 3-year plan to compete aggressively
First Ghana Savings and Loans Ltd has started the implementation of a three-year strategic plan aimed at putting the company on a sound footing to compete effectively in the market place.
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Already, management, staff and the board have worked hard to reverse the loss making fortunes of the company, with a modest profit that provides hope and bliss for the company’s future.
At the second annual general meeting of the company in Accra on August 30, the Chairman of the Board of Directors, Mr John Kwaku Asamoah, announced a GH¢694,562 profit the company recorded for last year, a recovery from the GH¢3.18 million loss posted in 2014.
“The performance is a result of prudent management practices and making sure that we kept controllable cost in check. Our investment also grew and the staff was also committed to the course of board and management to ensure that we reverse the negative trend,” Mr Asamoah told the GRAPHIC BUSINESS shortly after the AGM.
He said with the implementation of the 2016-2018 strategic plan, a sequel to an earlier one, underway it was the company’s resolve to build upon the modest profit in 2016 and beyond.
The medium term plan
The plan hinges on fully computerising the operations of the company from its
current heavily manual systems.
The company would also refurbish existing branches and add on new ones at strategic locations to increase deposit base to enhance profitability.
“By this plan, we are expecting to reverse our negative income surplus in three years to be able to put smiles back on the faces of our shareholders by paying them dividends in addition to the capital gains they are having,” the board chairman stated.
He explained that the overall objective was to ensure First Ghana Savings and Loans competed properly with peers on the market.
“We came from a building society background and metamorphosed into this space so we want to able to compete with all major savings and loans companies in the country,” Mr Asamoah said.
Financial position
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. This 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.
In spite of the positive story, general and administrative expenses went up by 44.53 per cent from GH¢3.12 million at the end of 2014 to GH¢4.51 million at the end of 2015. The income surplus is also in the negative at GH¢8.32 million.
But the board chairman said the swelling of the expenses was largely due to staff emoluments, which was revised upwards because staff had been committed and agreed to stay their salaries for a long time.
“Our staff have been very patient with us for a long time, throughout our trying moments. So last year, we had to adjust their salaries. Irrespective of that increase, we still managed to reverse the negative trend by posting profit for the first time in two years,” Mr Asamoah stated. — GB