SG-SSB. Facts Behind The Figures. Thursday 12th April 2012

Transcription

1 SG-SSB Facts Behind The Figures Thursday 12th April 2012

2 PRESENTATION OUTLINE Corporate Profile Strategic Orientations Economic Environment Overall Financial View: 2011 Business Operations Corporate Social Responsibility What is new at SG-SSB Outlook and challenges for 2012 and beyond Share Performance Conclusion DATE 12/04/2012 P.2

3 CORPORATE PROFILE 1975: Creation of SOCIAL SECURITY BANK, subsidiary of the SSNIT 1994: Merger with the National Savings & Credit Bank and renamed: SSB Bank Ltd. 1995: The bank is privatized and is listed on the Ghana Stock Exchange March 2003: Societé Générale, represented by its subsidiary GENEFITEC, acquires 46.7% of the capital of the bank (of the shares) and becomes the reference partner July 2003: Tender offer of GENEFITEC: Societé Générale shares increase to 51% March 2004: Name Change from SSB Bank Ltd to SG-SSB Ltd Nov. 2009: SG-SSB rights offer issue: Societé Générale shares increase to 52.24% Capital: GH 62.4 Million Share Holding :SG Financial Services Holding (ex-genefitec): 52.24% Social Security and National Insurance Trust: 22.14% Daniel Ofori: 7.30% Others: 18.32% Administration Chairman: Bernard David Managing Director: Gilbert Hie DATE 12/04/2012 P.3

4 CORPORATE PROFILE (cont d) Universal Banking License 34 Branches,7 Agencies and 4 Spot banks Customers (229,957) Retail 213,546 Business Banking - 16,411 DATE 12/04/2012 P.4

5 CORPORATE PROFILE (cont d) SOCIETE GENERALE GROUP Société Générale Group French Networks International Retail Banking Specialized Financing and Insurance Private Banking Global Investment Management Services Corporate and Investment Banking Africa Middle East SG-SSB Limited Ghana and 15 other SG Subsidiaries SG-SSB falls under BHFM, the International Retail Banking arm of the Societe Generale Group. DATE 12/04/2012 P.5

6 SG-SSB - Our Mission Statement Our Mission is to create the preferred banking institution, which employs Professionalism, Team Spirit and Innovation to provide Quality products and services that best satisfy the needs of our customers. DATE 12/04/2012 P.6

7 Our Group Core Values Professionalism Team Spirit Innovation Adapted locally for:- being closer to the customer, offering adapted products, and ensuring a high quality of service DATE 12/04/2012 P.7

8 STRATEGIC ORIENTATIONS COMMERCIAL Universal Banking Strategy State Primary Dealer in Government Securities & Direct Lender Corporate Banking: Priority to trade Bigger Volumes SME : careful and measured approach in a difficult segment Retail Banking: More sales and Service at the Branch Level Treasury/Forex: To Boost volumes with new products International Banking Services (Group edge) DATE 12/04/2012 P.8

9 Economic Environment Figures % Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 (% unless otherwise indicated) Budgeted Real Gross Domestic Product growth Including Oil Growth 13.6 (7.7 in 2010) 9.4 Inflation End-period inflation 8.58 (8.58 in 2010) 8.5 Overall Budget Deficit % of GDP Gross International Reserve % of GDP (latest October 2011) $4.98B ($4.68B OTHER KEY INDICATORS: Exchange rates (exceeding 3 months import cover) Dec-2010 GHS/USD GHS/Euro Stock Exchange Not less than 3 months import cover Dec-2011 GSE-CI 1, GSE-FSI 1, SG-SSB (GHS) Market Capitalization (GHS) 20,116.7 M 47,347.23M Commodity prices Gold ($ per Oz) NY Spot 1, ,566.4 Cocoa ($/tonnne) 3, ,145.2 Oil (Brent; $ per barrel) Interest and Policy Rates 91 - days days Bank of Ghana (Policy Rate) SG-SSB Base Rate Evolution in Benchmark 91-Day T'bill Rate 12.1 Inflation Trend Dec Dec Forex Rates from Dec Dec Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 EURO 8.59 USD Dec-10 Mar-11 Jun-11 Sep-11 Dec DATE 12/04/2012 P.9

10 SG - SSB Profit and Loss Statements Net Banking Income: +14% Increase in Customer lending IN GHS %DIFF Higher volume of Investments resulting from excess liquidity over the period. NET BANKING INCOME 93, , % Also increased Commissions and Fees Income as a result of the rise in demand for foreign exchange by market. Operating Expenses: +21.5% OPERATING EXPENSES (60,035.3) (72,926.0) +21.5% GROSS OPERATING INCOME 33, , % Higher Staff Cost due to the provision for improved conditions of service in respect of the CBA negotiations. CREDIT LOSS EXPENSES (6,512.0) (907.9) -86.1% Increased running costs is mainly due to general increase in price levels, upward reviews of tariffs and increased depreciation cost. Improvement in Provision for Bad debt : -86.1% The improved position is attributable to the restatement of the Stock of Provision and a change in the basis of computing of the IFRS Bad Debt charge. Net Operating Profit +21.7% NET OPERATING PROFIT 26, , % SHARE OF PROFIT FROM ASSOCIATES % PROFIT BEFORE TAX 27, , % NET RESULT 19, , % COST / INCOME RATIO 64.3% 68.5% EARNING/SHARE (GH ) DATE 12/04/2012 P.10

11 SG-SSB Balance Sheet as at December 31st, 2011 Financial Investments: +67% As at the end December 2011 exposure to the state stood at GHS154.5M; an increase of GHS50 (+47.4%) over the previous year. The Bank also invested in a GHS 20 million in Commercial Paper issued by a third party. Gross Customer credits: +14.4% Growth by all the business segments i.e. Corporate Banking (+9.5%), SME Banking (+7.4%) and Retail Banking (+28.1%). Gross Customer Deposits: +26.3% Significant growth by all the business segments i.e. Corporate Banking (+37.1%), SME Banking (+3.9%) and Retail Banking (+26.7%). Fixed Assets: +97.8% The Bank has performed a re-evaluation of its assets (Lands and Buildings) leading to a revaluation amount of GHS 24 million ion both fixed assets and shareholders equity GHS % Change ASSETS Cash and short term funds 230, , % Financial investments (Government Securities) 104, , % Other Asset Accounts 15, , % Loans and advances 301, , % Investment in Associate 2, , % Fixed assets 35, , % TOTAL ASSETS 691, , LIABILITIES Customer deposits 495, , % Interest payable & other liabilities 53, , % Due to banks & other financial institutions 22, , % Deferred tax liabilities 1, % Equity 118, , % TOTAL LIABILITIES AND EQUITY 691, , Loan/Deposits ratio 60.80% 55.06% DATE 12/04/2012 P.11

12 B/S and activity: Credit Evolution by type of customer Both Retail and Business Banking recorded appreciable growth due the increased proactiveness towards customers alongside the strategic approach in making credits more accessible and affordable to customers. 206, , , ,906.0 The bank reduced its base rate from 24.5% to 22.5% i.e. 200bps. Business Banking evolution (Y on Y) Corporate: +9.5% SME: +7.4% Retail Banking evolution (Y on Y) Individuals: +28.1% 23, , , ,544.0 Jun-10 Dec-10 Jun-11 Dec-11 Corporate SME DATE 12/04/2012 P.12

13 B/S and activity: Deposits Evolution by type of customer The appreciable growth by all the business units over the period is a reflection of an increased market presence. And also, this in line with the bank s growth strategy and the continual improvement in service delivery platforms with the expansion of the bank's branch network over the year (opening of two more branches at Madina in Accra and Kejetia in Kumasi, and two spot banks in Accra - Legon and Motor way extension). Business Banking evolution (Y on Y) Corporate: % SME: + 3.9% Retail Banking evolution (Y on Y) Retail Banking: % DATE 12/04/2012 P.13

14 SG-SSB Risk Coverage as at December 31st, 2011 RISKS COVERAGE AND COST OF RISKS (GHS 000) Dec-10 Dec-11 % chge Total Gross Credit Exposure 324, , % Total Stock of Provision 18, , % Risk Coverage (NPL covered by provision) 99.0% 72.7% -26.3% Charges for Bad Debt (Year to date) 6,512.0 (907.9) -86.1% Recovery on Charge Offs 1, , % Net Cost of Risk (NCR) 5, N/A NPL/Total Gross Credit Exposure 5.8% 6.5% (8.5% at BoG criteria) +0.7% DATE 12/04/2012 P.14

15 Business Banking Operations Strong growth in Deposit and moderate evolution in Credit recorded amidst challenging conditions: Intense local competition; Growing sophistication of clients; Prudent Risk appetite. Corporate Client Services & Support Desk established to allow Sales Team focus on client recruitment ; and To improve servicing of existing clients to achieve total client satisfaction Staff recruitment: Senior Banker position created to drive sales and business development in the Corporate Banking; New Corporate Banking Desk has been established in Kumasi. Robust International Banking Operations: 43% growth in Export flows, 58% growth in import operations including Letters of Credit established. DATE 12/04/2012 P.15

16 Retail Banking Operations During the year under review, principal changes were as follows: RUBI (Retail Universal Banker Initiative) Project aimed at changing the orientation of the network from a process-driven organization to sales and service focused business. The changes are expected to enhance CUSTOMER SERVICE QUALITY and provide a one-stop service point that meet all the needs of our customers. Change in the structure of the middle management level from 2 Area Managers to 7 Territorial Unit Heads. This brings our middle level managers closer to the customer, offer branch staff the needed support and opened up new roles and opportunities for staff to meet their career aspirations. Strengthening of the back office in order to free frontline Retail staff to spend more time with clients. This led to centralization and automation of activities and processes. Centralized cheques clearing as well as salary processing. Loans processing DATE 12/04/2012 P.16

17 CHANNELS OF DISTRIBUTION As the 5 th largest branch network, it is our strategy to remain competitive in the face of an ever-changing demographics of the marketplace. Distribution Channels - A program to modernize all branch to SG standards. Our Accra Main, Asankragwa, Bolgatanga, Koforidua, & Kumasi Central Branches benefited. This is an on going activity and 13 branches have been lined for refurbishment - To get closer to our customers, we opened to new branches at Madina in Accra and Kejetia, in Kumasi to bring our branches to 34 with 7 agencies. C1 PRESENTATION TITLE DATE 00/00/2011 P.17

18 CHANNELS OF DISTRIBUTION - Opened 2 outlets ie Spot Banks at Legon and Tema Motorway Roundabout to offer extended services to our customers. This bring the number to 4 after the opening of the Osu and Pig Farm Spot We took some Banking services direct to companies through our Sales Team. This offered customers the opportunity to open accounts and apply for loans without moving out of their offices. C1 PRESENTATION TITLE DATE 00/00/2011 P.18

19 CHANNELS OF DISTRIBUTION REMOTE & ELECTRONIC CHANNELS - Enhanced ATM uptime and service availability across our network. In 2011, 5 new ATMs were installed at various branches to increase our ATM number to EASY DEPOSITS: 7 Cash/Cheques depositories installed at key ATM locations which allows customers to deposit their cash and cheques when the bank closes. Kejetia, Kumasi Central, Kaneshie, Okaishie, Tudu, Spintex Rd and Accra New Town Branches. - CALL CENTRE 2011, a project was initiated to bring it up to international standards to integrate all service contacts with customers and prospects and offer excellent support. - C1 PRESENTATION TITLE DATE 00/00/2011 P.19

20 CHANNELS OF DISTRIBUTION REMOTE & ELECTRONIC CHANNELS - CARD BUSINESS: Acquiring business through the use of modern Point-Of- Sales terminals(pos) with GPRS terminals. 90 key merchants have had their dial-up terminals changed in 2011 with 155 new GPRS terminals. Plans are afoot to increase this number. - Multichannel (electronic) Channels: Both channels and products set went through a review and re-designing phase to meet customers current aspirations and demands. Very soon, customers will experience enhanced internet banking, SMS banking,, e-alerts and other e-banking channels C1 PRESENTATION TITLE DATE 00/00/2011 P.20

21 Business Operations - Treasury PRIMARY DEALER: SG-SSB appointed PD in government securities with authorisation to participate in weekly auctions of securities from BoG. BOND TRADING BUSINESS: Launch of bond trading business with SG-SSB authorised to trade on the secondary market in the same securities. FOREIGN EXCHANGE HEDGING: Launched Foreign Exchange Forwards and SWAPs which is traded with customers and SG Corporate and Investment Banking in London and Paris. GROWTH IN INVESTMENT PORTFOLIO: Investments in 2011 saw a strong growth in the investment with growth in local and foreign currency liquidity. FOREIGN EXCHANGE: increased total volumes and marked volatility in the Q offering opportunity to improve margins and commissions DATE 12/04/2012 P.21

22 SUSTAINABLE DEVELOPMENT AND CORPORATE SOCIAL RESPONSIBILITY ( CSR ) CSR is To Care; To Share; and To Respect. Internally from the business of lending, care for employees, staff, work conditions and respect. Externally help with sponsoring sports, health, education, and culture and the environment. Corporate governance focused on enhanced risk management controls, a well-developed compliance system, strict internal control processes. The principles of Sustainable Development and ( CSR ) is reflected in the strategies of SG-SSB s businesses, thus contributing to value creation for SG-SSB and its stakeholders. SG Group is a member of the Global Compact Group and adheres to the Equator Principles. DATE 12/04/2012 P.22

23 COMMERCIAL: What is new at SG-SSB? SG-SSB appointed primary dealer of Government of Ghana securities Introduction of Bonds Trading and Foreign exchange Swaps Introduction of Ariz guarantee in Partnership with AFD for SME financing Expansion of Branch Network (Legon, Tema Ashiaman) and Branch (Kejetia and Madina) Development, refurbishment and upgrade of branch networks RUBI Quality Service and Sales Project at the Retail Banking Division Corporate service support created to improve service delivery to our corporate client New Corporate desk in the Ashanti Region Activation of Cash Easy Deposits Western Union DATE 12/04/2012 P.23

24 What is new at SG-SSB? OPERATIONS : Central Cash Management Unit created Recovery Project and Patrol Permanent Supervision Operational Efficiency BMC (production system monitoring) Commercial Monitoring Tool Business Object Reporting Application PATROL Implementation to help Retail and Business units to manage Credit Risk. DATE 12/04/2012 P.24

25 General: Outlook and Challenges for 2012 and Beyond Global positive Outlook of the country with high GDP growth rate (8% in 2012) High level of competition in banking sector and Difficulty to increase market share Necessary investments in Network and IT tools for Operational Efficiency Increase productivity, profitability and cost optimisation Provision for Visibility Enhancement Project and Branding standardization in the Network DATE 12/04/2012 P.25

26 Outlook and Challenges for 2012 and Beyond Commercial: High priority on Corporate Banking after reorganization and better animation Moderate and careful growth of SME sector with AFD/Ariz support on Risk coverage Modernisation and Automation of Network Quality Service to the Customer Industrialisation of Retail Products Multi Channel Distribution DATE 12/04/2012 P.26

27 Outlook and Challenges for 2012 and Beyond Operational: Improved Operational efficiency and logistic in Network Construction of new Head Office Centralization of all back offices Implementation of numerous structural and IT automation projects Reorganization of Internal Audit towards change management Strengthening Permanent Supervision HR developments with e-valuation, HRM Online, health coverage, training DATE 12/04/2012 P.27

28 SHARE PERFORMANCE IN 2011 At the beginning of the year 2011 our Bank's share price was GHS0.64. The share price then rose and ended the year December 2011 at GHS Quantum of Dividends for the 2011 Financial Year is 4 Ghana Pesewas per share and amounts to GHc13,355,756 which is 76% of the distributable of the Bank. 1.1 SG-SSB Share price Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 DATE 12/04/2012 P.28

29 SG-SSB AMBITION 2015 Our local strategic thrust is founded on the 4 Pillars of our Global Strategy of Ambition 2015 Clients: Breaking new grounds in customer-privacy offering services par excellence at every opportunity. Focus on building lifetime relationships with our clients and turn them into advocates for the Bank. In short we aim at partnering them for their banking life. Operational Efficiency: effectively demonstrate total business control, work to improve key procedures and comply with and manage all risk inherent in banking business and make service delivery seamless and efficient. Staff: Staff development, training and re-training to match expected changes. Create opportunities within the workplace and ensure that staff remained committed and passionate about our goals. DATE 12/04/2012 P.29

30 SG-SSB AMBITION 2015 Communication: Improve all areas of communication with clients/customers, staff and all stakeholders. New Brand Signature of Building Team Spirit deployed. Work with our local communities and share SG-SSB values. We aim to remain committed to our key stakeholders and especially partner our clients/customers to meet their dreams and aspirations. Our aim is to capture ½ % of the ever-growing bankable population year on year. WE ASK YOU TO CONSIDER US PART OF YOUR TEAM. DATE 12/04/2012 P.30

31 CONSIDER US PART OF YOUR TEAM THANK YOU DATE 12/04/2012 P.31