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Business News of Tuesday, 27 October 2015

Source: GNA

BEIGE Capital makes impressive profit

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BEIGE Capital has recorded profit before tax (PBT) of GH¢8.5 million for the quarter ending September 2015, putting the company’s year-to-date position at GH¢12.3 million.

This compares favourably to the amount of GH¢9 million that was budgeted for the period under review.

The information was announced at the bank’s routine performance review meeting held for the quarter ending September 2015, at BEIGE Academy, in Accra, to evaluate all branches and functional teams on their performance as measured against the budget for the period.

The Ghanaian-owned bank said the results were achieved through a mix of carefully and strictly implemented strategies that include; minimising operating expenses, investing in quality assets only, and diversifying the source of its deposits.

The bank’s total assets stood at GH¢754million, a rise of approximately 9% above the previous quarter’s position of GHc695million.

Net loans and advances stood at GH¢343 million, being 45 per cent of total assets, while liquid and short -term investments stood at GH¢213 million, representing 28 per cent of total assets.

Shareholders’ funds at the end of the quarter stood at GH¢140 million. Again, this marginally exceeded the bank’s originally budgeted figure of GH¢138million.

In his report, the Chief Finance Officer noted that strict adherence to budgetary controls throughout the year had resulted in significant savings on operational expenditure and these were impacting positively on the bank’s bottom line.

Mr. Mike Nyinaku, the Chief Executive Officer (CEO) of the bank, stated: “The bank’s results have improved continuously and consistently every successive quarter of this year.

“Most of the milestones we put before us for 2015 are gradually being realised in spite of the difficult economic conditions facing us, the banking industry and the country at large.

“These results altogether, put us in a good position for the kind of business we intend to undertake come 2016”.

Mr Nyinaku stated that although the pace was slow, the bank was growing every quarter, which was what mattered…. “The bottom line is progress”.

Responding to questions about the bank’s exposure to the fluctuating currency market, Mr. Nyinaku remarked: “Every situation presented by indicators in the economy, whether positive or negative, also presents other opportunities.

“Just analyse this; if the currency market makes the oil and gas industry lose price, investors look for other avenues to invest their monies. At least in the short -term, they can invest in our Fixed Income Products, which offer very competitive rates.”

Mr. Nyinaku gave the assurance that the bank would continue to manage its exposures to ensure that it posted a set of healthy results, which would be the platform upon which it would drive its agenda for 2016.

“While perfecting our internal procedures, we are also actively seeking equity partnership from interested investors as we consider moving up the Tier,” he said.

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.