Bayport Savings and Loans profit up 33.8% in first-half 2024

A News Desk Report

Bayport Savings and Loans PLC has seen its pre-tax profit increase by 33.8 percent to GH¢21.96million for the six months ended June 30, 2024, according to its unaudited financial statements. This figure represents 66.73 percent of GH¢32.9million made by the company last year.

Consequently, the financial institution reported a 28.6 percent increase in total assets by reaching GH¢1.2billion, up from      GH¢930.3million in the same period last year. This growth was primarily driven by a 22.5 percent expansion in loans and advances to customers, which stood at GH¢946.63million.

Bayport’s customer deposit base saw a substantial rise of 87.2 percent, totalling GH¢290.3million.

Speaking during a Facts Behind the Figures session organised by Ghana Stock Exchange (GSE), Bayport’s Chief Executive Officer (CEO) Akwasi Aboagye explained that the shift in funding mix has reduced the company’s reliance on borrowings – which now represent 49.9 percent of total liabilities, down from 57.7 percent in the previous year.

“This is a significant development, as it allows us to access funding at a more favourable cost. This is particularly important in the current economic climate, where interest rates are at a premium across all sectors,” he noted.

The company’s liquidity position improved, with cash and cash equivalents increasing by 79.6 percent to GH¢30.3million. Net profit also increased by 33.8 percent to GH¢15.08million. This improvement was underpinned by a 47.8 percent growth in net interest income, which reached GH¢84.2million.

Despite these gains, its non-performing loans (NPLs) ratio increased from 14.6 percent to 16 percent on account of defaults in some segments, which Bayport insists are being addressed and will reflect in subsequent results. Pressure from the NPLs is further evidenced by a substantial rise in net impairment loss on financial assets, which jumped from GH¢724,090 to                  GH¢7.82million.

Furthermore, the capital adequacy ratio, still above the regulatory requirement, declined from 16.5 percent to 14.5 percent. Operating expenses also grew at a faster rate than income. Personnel expenses increased by 35.2 percent, while other expenses rose by 41.3 percent.

Chief Finance Officer Dzifa Cofie however added: “Our ability to grow its deposit base and loan portfolio in this challenging environment gives us much confidence going forward. Our growth trajectory remains strong, but we are acutely aware of challenges posed by the current economic environment. We are implementing stringent measures to address asset quality concerns and maintain our capital position”.

Last year, Bayport successfully raised GH¢50million through a two-year senior unsecured floating rate note issuance. This was the first tranche of a GH¢500million medium-term notes and bond programme. The notes were listed on the Ghana Fixed Income Market segment of GSE on March 4, 2023.

At that time, the company confirmed the proceeds would be used for supporting payroll lending to low-income public sector workers – who without it may not have access to traditional banking products and services.

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