The Management of BEIGE Capital has met to review the bank’s mid-year performance. The mid-year review, which was held at the BEIGE Academy in Accra, took stock of the bank’s current performance with reference to the Strategic Operational Plan for 2015.
BEIGE Capital’s 2015 strategic plan sets targets which seek to maintain and consolidate its leadership position among the Tier II Category of banks in Ghana.
The bank was able to achieve averagely 85 per cent of its mid-year targets for all key performance indicators. Deposits increased by 28 per cent from 2014 year-end position of GHc413m. Borrowing also increased by 55 per cent from the December 2014 figure of GHc24m. Total assets increased by 28 per cent.
Total Assets position at GHc695m represented 27 per cent of the industry’s total. Loans and advances increased by 12 per cent. Cash and bank balances stood at GHc47m; an increase of 64 per cent from the December 2014 position. Shareholders’ funds stood at GHc132m, representing 35 per cent of the industry.
Although the bank achieved a significant increase in its Demand Deposits Book, the results at the end of the period was below expectation.
The Chief Executive Officer, Mr Mike Nyinaku, said, “We have successfully created a platform that will enable us to consolidate our leadership in the industry and hopefully transition into universal banking, if need be. Our key challenge now is our inability to offer certain basic banking services in spite of our size and capacity, due to regulatory limitations within the Banking Act for savings and loans companies.
“Considering that our current stated capital falls just a shade short of the central bank’s minimum capital requirements for universal banks, we are actively seeking equity partnership from interested investors as we consider moving up the tier. In so doing, we have also not ruled out the possibility of listing on the stock exchange,” he said.
Mr Nyinaku congratulated the management and staff of Beige Capital but cautioned management not to be complacent.
“The bank cannot afford to be complacent at the No.1 position,” he said, adding “this is the time to put in our maximum effort to drive business and improve profitability for our shareholders. In times as challenging as now, it’s prudent that we invest only in quality assets”.
Mr Nyinaku also predicted that the third quarter would be challenging for the industry in general because of the instability of the dollar-cedi exchange rate and the difficult economic conditions that the industry faced.
During the review, the various branches of BEIGE Capital gave presentations on their individual positions with respect to the overall performance of the bank. The top five performing branches were honoured by management.
Since its inception in 2008, BEIGE Capital has seen consistent growth both in the size and scope of its operations. BEIGE Capital has business offices in many parts of the country and employs about 700 people.
Source: Graphic