SOCIETE GENERALE GHANA PLC

2021 AUDITED FINANCIAL STATEMENTS

STATEMENT OF PROFIT OR LOSS AND STATEMENT OF FINANCIAL POSITION

OTHER COMPREHENSIVE INCOME AS AT 31 DECEMBER 2021
FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
GH¢ GH¢
2021 2020
GH¢ GH¢ Assets

Interest income 510,992,929 519,463,379 Cash and cash equivalents 963,960,922 1,561,983,616

Interest expense (109,990,417) (114,251,411) Non-pledged trading assets 143,156,280 67,896,476

Net interest income 401,002,512 405,211,968 Debt instruments at fair value through other comprehensive income 87,240,744 108,961,776

Fees & commission income 77,475,216 77,148,106 Debt instruments at amortised cost 1,383,955,004 427,587,822
Fees & commission expense (27,252,208) (22,847,209) Loans and advances to customers 2,504,366,677 2,562,706,675
Net fees and commission income 50,223,008 54,300,897 Equity investments 2,923,386 12,236,465
Net trading revenue 40,793,352 41,660,244 Other assets 54,130,188 66,511,519
Net income from other financial instruments carried at fair value 52,835,645 52,417,416 Property, plant and equipment 255,268,418 290,748,100
Other operating income/(expense) 91,439,536 (4,644,872) Intangible assets 15,009,794 1,264,470
Total other operating income 185,068,533 89,432,788 Deferred tax assets 27,010,706 15,309,433
Operating income 636,294,053 548,945,653 Total assets 5,437,022,119 5,115,206,352
Net impairment loss on financial assets (33,407,581) (33,349,574) Liabilities
Operating income net of impairment charges 602,886,472 515,596,079 Deposits from banks 1,916,501 3,945,938
Personnel expense (135,516,867) (128,691,845) Deposits from customers 3,391,140,683 3,481,343,321
Depreciation and amortization (34,807,599) (33,588,164) Borrowings 588,864,628 366,266,787
Other operating expenses (150,595,307) (131,686,035)
Derivative financial liabilities 40,509,648 -
Profit before income tax 281,966,699 221,630,035
Current tax liabilities 21,325,184 25,752,524
Income tax expense (97,637,066) (67,421,120)
Other liabilities 364,700,138 312,302,893
Profit after tax expense 184,329,633 154,208,915
Total liabilities 4,408,456,782 4,189,611,463
Other comprehensive income
Shareholders’ fund
Items that may be reclassified subsequently to profit or loss
Stated capital 404,245,427 404,245,427
Debt instruments at fair value through other comprehensive income- (689,424) 1,781,205
Income surplus 207,312,183 149,907,074
Less tax 172,356 (445,301)
Revaluation reserve 123,670,260 123,670,260
Other comprehensive income, net of income tax (517,069) 1,335,904
Statutory reserve 292,518,632 246,436,224
Total comprehensive income for the year 183,812,564 155,544,819
Other reserves 818,835 1,335,904
Earnings per share:
Total shareholders’ fund 1,028,565,337 925,594,889
Basic earnings per share (GH¢) 0.260 0.217
Total liabilities and shareholders’ fund 5,437,022,119 5,115,206,352
Diluted earnings per share (GH¢) 0.260 0.217
The accompanying notes form an integral part of these financial statements.
Approved by the Board and signed on its behalf as follows:

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021
Margaret Boateng Sekyere (Chairperson) Hakim Ouzzani (Managing Director)
25 February 2022 25 February 2022
2021 2020
GH¢ GH¢

Operating activities
Operating profit before taxation 281,966,699 221,630,035
Adjustments for:
Impairment provision 42,426,979 (42,706,385)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
Fair value adjustment on equity investment 27,729 1,038,501
Fair value adjustment on non pledged trading assets (498,926) 797,756
Depreciation and amortization 34,807,599 33,588,164
Total
Other non cash adjustments 253,315 - Stated Income Revaluation Statutory Other shareholders’
Derivative revaluation 40,509,648 - Capital surplus Reserve reserve reserves equity
GH¢ GH¢ GH¢ GH¢ GH¢ GH¢
Unrealized loss on forex revaluation 1,320,467 5,918,445
Operating profit before working capital changes 400,813,510 220,266,516 For the year ended 31 December 2021

Changes in operating and other assets and liabilities Balance as at 1 January 2021 404,245,427 149,907,074 123,670,260 246,436,224 1,335,904 925,594,889
Change in non-pledged trading assets (74,760,878) (11,170,296)
Movements during the year:
Change in loans and advances to customers 27,865,665 123,393,711
Change in other assets 7,878,603 (3,997,284) Profit for the year - 184,329,633 - - - 184,329,633
Change in deposit from banks (2,029,438) (21,729,452) Other movements in equity:
Change in deposit from customers (90,202,638) 311,637,350
Debt Instruments at FVOCI - - - - (517,069) (517,069)
Change in other liabilities 54,684,493 79,183,783
(76,564,193) 477,317,812 Dividend - (80,842,116) - - - (80,842,116)
Income tax paid (113,593,324) (92,903,430) Transfer to statutory reserve - (46,082,408) - 46,082,408 - -

Balance as at 31 December 2021 404,245,427 207,312,183 123,670,260 292,518,632 818,835 1,028,565,337
Net cash flows from operating activities 210,655,993 604,680,898
Cash flow from investing activities
Purchase of investment securities (1,032,517,702) (482,702,414)
Matured investment securities 97,146,284 31,039,014
Equity investments - (4,412,066) Total
Purchase of property, plant and equipment (9,976,897) (32,605,733) Stated Income Revaluation Statutory Other shareholders’
Capital surplus Reserve reserve reserves equity
Purchase of intangible assets (3,096,344) (397,817)
GH¢ GH¢ GH¢ GH¢ GH¢ GH¢
Net cash flows used in investing activities (948,444,659) (489,079,017)
Cash flow from financing activities For the year ended 31 December 2020

Proceeds from borrowings 235,912,637 202,544,707 Balance as at 1 January 2020 404,245,427 66,161,749 123,670,260 207,883,995 - 801,961,431
Repayment of borrowings (13,314,795) (13,973,897)
Movements during the year:
Dividend paid (80,842,116) (31,911,361)
Net cash flows from financing activities
141,755,726 156,659,449 Profit for the year - 154,208,915 - - - 154,208,915
Change in cash and cash equivalents (596,032,940) 272,261,330 Other movements in equity:
Net foreign exchange and revaluation difference (1,320,467) (5,918,445)
Debt Instruments at FVOCI - - - - 1,335,904 1,335,904
Cash & cash equivalents at 1 January 1,561,983,616 1,295,640,731
Cash and cash equivalents at 31 December
964,630,209 1,561,983,616 Dividend - (31,911,361) - - - (31,911,361)
Operational cash flows from interest: Transfer to statutory reserve - (38,552,229) - 38,552,229 - -
Interest received 442,305,272 516,115,683
Balance as at 31 December 2020 404,245,427 149,907,074 123,670,260 246,436,224 1,335,904 925,594,889
Interest paid 111,201,903 111,882,687
Dividend received - 133,640
 2. The risks inherent in the Bank’s activities are managed through a process of ongoing
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
identification, measurement and monitoring, subject to risk limits and other controls.
This process of risk management is critical to the Bank’s continuing profitability and
The Directors are responsible for preparing financial statements for each financial period, each individual within the Bank is accountable for the risk exposures relating to his or
which give a true and fair view of the state of affairs of the bank at the end of the period and her responsibilities.
of the profit or loss of the bank for that period. In preparing those financial statements, the 3. The Board of Directors is responsible for the overall risk management approach and for
Directors are required to: approving the risk management strategies and principles. In addition, there are Risk
yy Select suitable accounting policies and then apply them consistently. Committees that have the overall responsibility for the development of risk strategy
and implementing principles, frameworks, polices and limits.
yy Make judgments and estimates that are reasonable and prudent.
4. Over the year under review, the Board of Directors have assessed the dominant risks
yy State whether applicable accounting standards have been followed subject to any faced by the bank as generally stable over a three year period.
material departures, disclosed and explained in the financial statements.
yy Prepare the financial statements on a going concern basis unless it is inappropriate to
presume that the company will continue in business. DEFAULTS IN STATUTORY LIQUIDITY 2021 2020
The Directors are responsible for ensuring that the company keeps accounting records which Number of Defaults in Statutory Liquidity Nil Nil
disclose with reasonable accuracy the financial position of the company and which enable
Sanctions Nil Nil
them to ensure that the financial statements comply with the provision of the Companies
Act, 2019 (Act 992) and the Bank and Specialized Deposit Taking Institutions Act, 2016 (Act
930) and International Financial Reporting Standards. They are responsible for safeguarding REGULATORY BREACHES
the assets of the bank and hence for taking steps for the prevention and detection of fraud The Bank was fined an amount of GH¢2,259,178 by the Bank of Ghana (BoG) in respect of regulatory
and other irregularities. breaches in relation to the breach of single obligor limit and late submission of returns.
The above statement should be read in conjunction with the statement of the auditors’
responsibilities, which is made with a view to distinguishing, for shareholders, the respective REPORT OF THE INDEPENDENT AUDITOR ON
responsibilities of the Directors and the Auditors in relation to the financial statements.
THE SUMMARY FINANCIAL STATEMENTS TO THE
SHAREHOLDERS OF SOCIETE GENERALE GHANA PLC
NOTES TO THE SUMMARY FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021 Opinion
We have audited the financial statements of Societe Generale Ghana PLC (the Bank) which
REPORTING ENTITY comprise the statement of financial position as at 31 December 2021, the statement of
Societe Generale Ghana PLC (the Bank) is a limited liability company incorporated in Ghana profit or loss and other comprehensive income, the statement of changes in equity and
under the Companies Act, 2019 (Act 992). The Bank is domiciled in Ghana with its registered the statement of cash flows for the year then ended, and notes to the financial statements,
office at 2nd Crescent, Royalt Castle Road, Ring Road Central, Accra. The Bank is authorized including a summary of significant accounting policies.
and licensed to carry out the business of banking and provides retail banking, corporate
banking, investment banking and other financial intermediation activities and specialized In our opinion, the financial statements present fairly, in all material respects, the financial
financing activities such as leasing and consumer credits through its network of branches position of the Bank as at 31 December 2021, and its financial performance and cash flows
and outlets including divisions across Ghana. for the year then ended in accordance with International Financial Reporting Standards
(IFRS) and in the manner required by the provisions of the Companies Act, 2019 (Act 992)
The principal activities of the Bank are described in the Directors’ Report. Societe Generale and the Banks and Specialized Deposit -Taking Institutions Act, 2016 (Act 930).
(Group), a bank incorporated in France, is the ultimate parent of the Bank.
Summary financial statements
The Bank is listed on the Ghana Stock Exchange (GSE). This has enabled the equity shares of The summary financial statements do not contain all the disclosures required by International
the Bank to be traded publicly on the Ghana Stock Exchange (GSE). Financial Reporting Standards (IFRS), the Companies Act, 2019 (Act 992) and the Banks and
Specialized Deposit-Taking Institutions Act, 2016 (Act 930). Reading the summary financial
STATEMENT OF COMPLIANCE statements and the auditor’s report thereon, therefore, is not a substitute for reading the
These financial statements of the Bank have been prepared in accordance with International audited financial statements and the auditor’s report thereon.
Financial Reporting Standards (IFRS) as issued by the International Accounting Standards
Board (IASB) and accounting requirement as dictated by the guide for financial publication The audited financial statements and our report thereon
2017 issued by the Bank of Ghana. Except as otherwise specified by the guide for financial We expressed an unmodified audit opinion on the audited financial statements in our report
publication, the financial statements were prepared in accordance with IFRS and other dated 25 February 2022. That report also includes the communication of other key audit
related laws in Ghana. matters. Key audit matters are those matters that, in our professional judgement, were of
most significance in our audit of the financial statements of the current period.
ACCOUNTING POLICIES
The accounting policies adapted by the Bank are consistent with those of the previous Directors’ responsibility for the summary financial statements
financial year. The Directors are responsible for the preparation of the summary financial statements in
accordance with the Bank of Ghana guide for financial publication for banks and Bank of
BASIS OF PREPARATION Ghana (BOG) licensed financial Institutions.
The financial statements of the Bank have been prepared on a historical cost basis, except
for Financial assets and liabilities held-for-trading, Derivative financial instruments and Auditor’s responsibility
Equity investments which are at fair value. Land and buildings are also carried under the Our responsibility is to express an independent opinion on whether the summary financial
revaluation model. statements are consistent, in all material respects, with the audited financial statements
based on our procedures, which were conducted in accordance with International Standards
QUANTITATIVE DISCLOSURES on Auditing (ISA) 810 (Revised), Engagement to Report on Summary Financial Statements.
2021 2020 The Engagement Partner on the audit resulting in this independent auditor’s report is
Capital Adequacy Ratio 22.38% 20.79%
Pamela Des Bordes (ICAG/P/1329).

Common Equity Tier 1 / RWA 20.79% 19.15%

Leverage Ratio 12.57% 12.59%
Loan Loss Provision Ratio 8.35% 7.43% Ernst & Young (ICAG/F/2022/126)
Liquidity Ratio 108.78% 88.26% Chartered Accountants, Accra, Ghana
Gross Non-performing Loan Ratio 7.58% 6.72% 25 February 2022
Off-Balance Sheet Exposures (GH¢’M) 1,079.86 665.07

QUALITATIVE DISCLOSURES
RISK MANAGEMENT
1. The Bank is exposed to the following risks: credit, liquidity, interest rate, market and
other operational risks.