Societe Generale Ghana PLC recorded a sharp decline in profit for the first half of 2026, despite strong growth in customer deposits, loans and total assets.

The bank reported a profit after tax of GH¢128.2 million for the six months ended June 30, 2026, down approximately 47.7% from the GH¢245.1 million recorded during the same period in 2025.

Profit before tax also declined by about 47.5%, falling from GH¢377.9 million to GH¢198.4 million. Earnings per share consequently dropped from GH¢0.69 to GH¢0.36.

Interest income declines

The reduction in profit was largely driven by weaker interest earnings.

Interest income declined by approximately 27.8% from GH¢729.1 million in the first half of 2025 to GH¢526.2 million in 2026.

Although interest expenses reduced from GH¢113.7 million to GH¢93.4 million, the decline was not enough to offset the fall in interest income. As a result, net interest income dropped by about 29.7% to GH¢432.9 million, compared with GH¢615.4 million a year earlier.

Net fees and commission income, however, improved by 27.3%, rising from GH¢43.8 million to GH¢55.8 million.

The bank also reported GH¢43.3 million in net trading revenue, down from GH¢65.3 million in the corresponding period of 2025.

Total operating income declined by approximately 18% from GH¢664.4 million to GH¢545 million.

Operating expenses increase

Societe Generale Ghana’s total operating expenses increased by approximately 9% to GH¢356 million, from GH¢326.7 million in the first half of 2025.

Personnel expenses rose from GH¢146.7 million to GH¢158.3 million, while depreciation and amortisation increased from GH¢60.8 million to GH¢75.2 million.

Other operating expenses also increased slightly to GH¢122.6 million, compared with GH¢119.2 million in the previous year.

The bank recorded a net impairment gain of GH¢9.4 million, significantly lower than the GH¢40.2 million impairment gain reported in the first half of 2025.

Loans, deposits and assets grow

Despite the decline in profitability, Societe Generale Ghana recorded strong growth across key areas of its balance sheet.

Loans and advances to customers increased by approximately 21.8% to GH¢4.65 billion, from GH¢3.82 billion in June 2025.

Customer deposits also grew by 20.2%, reaching GH¢6.84 billion, compared with GH¢5.69 billion a year earlier.

Total assets rose by about 12.6% from GH¢9.75 billion to GH¢10.97 billion.

Cash and cash equivalents increased to GH¢3.63 billion, while debt instruments held at amortised cost declined from GH¢2.27 billion to GH¢1.62 billion.

Total liabilities increased from GH¢7.06 billion to GH¢8.42 billion. However, shareholders’ funds declined by approximately 5% to GH¢2.56 billion, from GH¢2.69 billion in June 2025.

Cash flow improves significantly

The bank generated GH¢659 million in net cash from operating activities during the period, reversing the negative operating cash flow of GH¢497.4 million recorded a year earlier.

After investing and financing activities, cash and cash equivalents for cash-flow reporting purposes stood at GH¢2.31 billion at the end of June 2026, up from GH¢1.75 billion in the comparable period.

Asset quality improves

Societe Generale Ghana’s non-performing loan ratio improved from 17.90% in 2025 to 13.85% in 2026. A lower non-performing loan ratio generally indicates that a smaller portion of the bank’s loan book is experiencing repayment difficulties.

The bank’s capital adequacy ratio, however, declined from 22.70% to 19.62%, while its liquidity ratio fell from 116.99% to 107.97%.

The bank reported no defaults in statutory liquidity requirements and received no related sanctions during the period.

Dividend Scheduled for September

Societe Generale Ghana also disclosed that a dividend of GH¢0.24 per share for the 2025 financial year had been approved by shareholders and the Bank of Ghana. The dividend is expected to be paid to shareholders in September 2026.

Overall, the half-year results show that while Societe Generale Ghana experienced significant pressure on its earnings, the bank continued to expand its loan book, attract more customer deposits and improve the quality of its credit portfolio.