Download annual report - Beige Capital

Savings and Loans
2015
ANNUAL REPORT
ddA
... every year we GROW.
And steadily, we are inching towards
the bar we’ve set for ourselves.
ddA
2015
Contents
Annual Report
Financial Highlights Page 2
Corporate Information Page 4
Honours Page 5
Board of Directors Page 7
Executive Committee Page 14
Executive SummaryPage 22
Strategic Operational Plan (SOP) 2016 Page 24
Report of the Chairman
Page 28
Report of the Chief Executive Officer
Page 33
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BEIGE AcademyPage 53
Financial StatementsPage 58
Statement of Comprehensive Income
Page 63
Statement of Financial Position
Page 64
Statement of Changes in Equity
Page 65
Statement of Cash flow
Page 67
Notes to the Financial Statements
Page 68
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2015
Annual Report
Financial Highlights
2015
2014
As at Year End
TOTAL ASSETS
818,086,627
540,436,128
TOTAL LOANS AND ADVANCES (NET)
415,770,723
312,542,985
TOTAL DEPOSITS & BORROWINGS
666,596,177
436,338,169
SHAREHOLDERS’ EQUITY
137,325,943
101,863,136
2015
2014
TOTAL INCOME (GH¢)
177,660,597
125,667,252
PROFIT BEFORE TAX (GH¢)
10,804,133
4,883,021
DIVIDEND PER SHARE (GH¢)
0.017
0
EARNINGS PER SHARE (GH¢)
0.09
0.05
RETURN ON AVERAGE EQUITY (%)
9%
6%
NUMBER OF STAFF
714
657
For the Year Ended December 31
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2015
Annual Report
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We are Home-Grown
so Believe with US
2015
Annual Report
Corporate Information
BOARD OF DIRECTORS
Kofi Otutu Adu Labi -
Chairman
Michael Kwadwo Nyinaku
-
Chief Executive Officer
Elikem Nutifafa Kuenyehia -
Director
Theophilus Adomako -
Director
Dorothy Mensah-Secretary (Resigned 31st December, 2015)
AUDITOR
Morrison & Associates
2nd Floor, Trinity House, Ring Road East
P. O. Box C2890 Cantonments, Accra
T: 0302 771372, 0302 771373
E: [email protected] / E: [email protected]
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CONTACT ADDRESS
Block E21, Adenta High Street
PMB 9AF, Adenta, Accra-Ghana
BANKERS
UT Bank Ghana Ltd
25B Manet Towers, Airport Towers, Accra
Ecobank Ghana Ltd
19 Seventh Avenue, Ridge West, Accra
SOLICITORS
Blagogee, Blacksword & Co
Madina Shell Filling Station Hollywood Lexus Hotel
P. O. Box AF1212
Adenta, Accra
Joseph Akyeampong & Co
#12 Olympics Road, Kokomlemle
P. O. Box CT6509
Cantonments
Accra-Ghana
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2015
Annual Report
Honours
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BEIGE Capital Savings and Loans (BCSL) was adjudged the best Savings and Loans Company and inducted into the ‘Made in
Ghana Hall of Fame’ at the 3rd Made in Ghana Awards 2015.
The Company was also commended for its general banking and investment services in the Financial Services Provider
category. The Entrepreneurs Foundation of Ghana (EFG) organized the event under the auspices of the Ministries of Trade
and Industry, Finance and Economic Planning, and the Ghana Standards Authority, on the theme: “Nationalism, the key to
social and economic development.”
By the end of 2020,
we shall be the SME Bank of choice
across Ghana.
And ultimately,
our intention is to build a world-class
Bank of Ghanaian origin,
‘poco a poco.’
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2015
Annual Report
Honours
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From left: Michael, Kezia, Alex, Nana Afia, Stephen.
The Chief Executive Officer (CEO), Mr. Mike Nyinaku, was awarded SME FINANCE LEADER OF THE YEAR, 2015. The
award was conferred on him at The GHANA CFO Awards 2015 at the Movenpick Ambassador Hotel in Accra.
The award was in recognition of the financial excellence Mr. Nyinaku had demonstrated over the years in private sector
business advocacy, to support Small/Medium-sized Businesses.
Mr. Nyinaku’s team from BCSL, received the award on his behalf.
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Annual Report
Meet The Board
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BOARD OF Directors
Kofi Otutu Adu Labi
Board Chairman
Kofi is a Legal Services Professional, an astute Administrator and Banker.
He has over thirty-five (35) years experience in the Banking Industry rising to the
top echelons of the Legal Services, Administration, Human Capital and Executive
Management.
He retired as Advisor to the Governor of the Bank of Ghana in 2011. Prior to
becoming Advisor, he served as Director-in-charge of Human Resource and Director
for Administrative Services respectively. He was instrumental in the establishment
of the Central Securities Depository and the Collateral Registry of the Bank of
Ghana.
He was also the Chairman of the Steering Committee of the Central Bank’s
Computerization Programme, IMPACT 05 and was Chair of Logistics Implementation
of the Redenomination of the Cedi, among other roles played in key initiatives
rolled out by the Bank of Ghana towards the reform of the banking sector.
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He joined the Bank of Ghana in 2000 from the then SSB Bank (now Societe Generale) which he entered as a pioneer staff in
1976. He was the youngest member of the SSB management team at the time and is credited with the establishment of the
Bank’s legal department. He served as Secretary to the Board and later became General Manager for Legal and Administration.
He holds an LLB (Hons) from the University of Ghana (1973) and was called to the Ghana Bar in 1975. He studied Investment
Negotiations at Georgetown University Law Center, Washington DC. Mr. Adu Labi holds a Masters in Business Administration
(MBA) from the University of Bradford School of Management (UK). He has also attended Management courses at the
Cranfield School of Management, the London Business School, the Centre for Central Banking Studies of the Bank of England,
Euromoney, the City of London and the International Law Institute, Washington DC, among others.
He is a member of the International Bar Association. Between 2009 and 2014 he was a Commissioner of the Securities and
Exchange Commission. He is a Trustee of the Education Foundation of the Presbyterian Church of Ghana and a Director of
Victory Presbyterian Church School, Accra.
“Kofi has over thirty-five (35) years experience in the
Banking Industry, rising to the top echelons of the Legal
Services, ... ”
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BOARD OF Directors
Annual Report
Mike Nyinaku
Chief Executive Officer
Mike founded BEIGE Capital, in 2008, after a successful career as a Professional
Accountant for ten (10) years.
As Chief Executive Officer, Mike has nurtured the growth of BEIGE Capital from its
inception to its current status as the leading Savings and Loans Company in Ghana.
As Director of Finance (between 2001 – 2008) for OICI-GH – a US based NGO; Mike
had responsibility for providing financial planning, management, capacity building
and technical advice on multiple community development programs in Ghana and
across West Africa. Prior to this, he trained as a Finance and Audit specialist with
Deloitte & Touche.
Throughout his career, Mike has demonstrated continuous leadership in business
excellence, technical skills and project execution. As award winning entrepreneur,
highly regarded as one of Ghana’s emerging business leaders, he features prominently in many speaking engagements aimed at
promoting thought leadership, youth and business development.
Add
He is a member of the Association of Certified Chartered Accountants (ACCA)
“As Chief Executive Officer, Mike has nurtured the
growth of BEIGE Capital from its inception to its current
status as the leading Savings and Loans Company in
Ghana.”
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Annual Report
BOARD OF Directors
Elikem Nutifafa Kuenyehia
Director
Elikem is an entrepreneur, lawyer, academic and business facilitator focused on FDI
into Africa.
He is Chairman of ENSafrica|Ghana, formed out of the merger between Oxford and
Beaumont Solicitors which he founded in 2006 and ENSafrica, Africa’s largest law
firm.
Before setting up Oxford & Beaumont Solicitors, Elikem was Head of Corporate
Services & Legal at United Bank of Africa (UBA) Ghana Limited and part of the
start-up team that established the bank in Ghana. He spearheaded the bank’s market
entry strategy and launched a number of innovative products including the Cashless
Account.
Prior to UBA, Elikem worked in Consumer Strategy and Marketing for Diageo North
America where he co-managed the Captain Morgan brand. He also worked as an international banking lawyer for the UK
magic circle firm Linklaters LLP.
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He is an adjunct lecturer at the Ghana Institute of Management & Public Administration (GIMPA) where he has taught
entrepreneurship since 2005. His book, ‘Kuenyehia on Entrepreneurship’ is considered a ground-breaking text on
entrepreneurship in Ghana.
For the 2015/2016 academic year, Elikem is the Corporate Executive-in-residence at the Department of Organisational
Behaviour & Human Resources at University of Ghana Business School.
Elikem has won a number of awards and accolades including: Ghana’s Most Promising Entrepreneur (2013), Forbes/CNBC
West Africa Business Leader of the Year (2012); A Next Generation African Leader (2012), World Economic Forum Young
Global Leader (2010), One of ‘Africa’s 40-under-40’ Achievers (2010), Young Professional of the year/Millennium Excellence
Award (2006); Kellogg Business Leadership Award (2002).
A passionate collector of African art, Elikem has recently established the Kuenyehia Prize for Contemporary Art to support
emerging and mid-career artists.
His board memberships include Google Ghana Limited, BEIGE Capital Asset Management and Chase Petroleum Ghana Limited.
Elikem was educated at Ridge Church, Achimota and the University of Oxford, and has an MBA (in entrepreneurship, finance
and marketing) from the Northwestern University’s Kellogg School of Management.
“For the 2015/2016 academic year, Elikem is the Corporate
Executive-in-residence at the Department of Organisational
Behaviour & Human Resources at University of Ghana
Business School.
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Annual Report
BOARD OF Directors
Theophilus Adomako
Director
Theophilus is a Management Consultant with over fourteen (14) years of experience
in management training, business and strategic planning, microfinance, project
management and business restructuring. His core competencies are in areas of
management development, consultancy, research and productivity improvement
programmes.
He read B.Sc. (Hons) Agriculture at the Kwame Nkrumah University of Science and
Technology (KNUST), Kumasi-Ghana and he continued with M. Sc. Agro-forestry
and an M.A. in Industrial Management. He also has a Post-Graduate Diploma in
Project Management from the Maastricht School of Management (MSM), Maastricht,
The Netherlands.
Theophilus has participated in several professional training and career development
programmes locally and abroad. In Ghana, he has participated in training programmes
in financial management, business plan development and enterprise development skills that were facilitated by CEDEP,
Technoserve/USA and SPEED/Ghana. He also participated in the consulting process training programme at MSM, Maastricht,
The Netherlands and in Practical Corporate Management for Productivity Improvement course at Japan Productivity Centre,
Tokyo.
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He has rendered services as a consultant to a number of institutions such as African Development Bank (AfDB), Social Investment
Fund (SIF), Ministry of Food and Agriculture (MoFA), ADRA/Ghana, SPEED/Ghana, Zenith Bank Ghana Limited, MIDA,
GTZ, National Banking College, FORUM Project, West African Markets Link Limited, amongst others. He also structured a lot
of corporate institutions and redesigned their conditions of service, job description and scheme of service as well as prepared
strategic and business plan documents for them.
He is an Adjunct Lecturer at the Chartered Institute of Bankers (Ghana) and currently a Resident Principal Consultant with the
Management Development and Productivity Institute (MDPI) in Accra. At BCSL, he plays a strategic role in Human Capital
Development, Customer Relations and Corporate Development.
“Theophilus is a Management Consultant with over
fourteen (14) years of experience in management training,
business and strategic planning.”
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Annual Report
BOARD OF Directors
Dorothy Mensah
Board Secretary
Dorothy is the Managing Consultant at Governance Direct.
Prior to establishing this firm, Dorothy worked as a Senior Associate within the
Finance, Projects and Governance team at Oxford & Beaumont Solicitors.
Dorothy has significant experience in Company Secretarial duties, Corporate
Compliance and Corporate Governance, gained from having managed a portfolio of
about 100 clients. She has served as Board Secretary to a number of key firms in Ghana,
notably, Black Star Line Ghana Limited, Venture Capital Trust Fund, Chase Petroleum
Ghana Limited and Goldkey Properties Limited among others.
Dorothy has vast experience in the incorporation of companies; registration at the
relevant regulatory agencies (such as Ghana Investment Promotion Centre, the Ghana
Revenue Authority), maintenance of statutory registers and carrying out all necessary corporate filings. Among others, she has
advised AGF Afrique, deVere Group Limited GmbH, Herbalife, MTG Broadcasting AB, GE Capital Aviation Services Ltd and
Nurevas International AG in connection with setting up in Ghana.
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In addition to relevant local experience, Dorothy possesses wide international exposure in the corporate world, having worked
with one of the world’s leading banks, Standard Chartered PLC in their London and Dubai offices. In the bank, she was
a Compliance Advisor and was responsible for Compliance risk advice, monitoring, anticipation and reporting as well as
regulatory relationships planning.
“Dorothy possesses wide international exposure in the
corporate world, having worked with one of the world’s
leading banks, Standard Chartered PLC in their London
and Dubai offices.”
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BOARD OF Directors
…however tall the boundaries and challenges
will be,
we remain UNFAZED
in our will to PURSUE our ASPIRATIONS.
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Annual Report
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Meet The EXCO
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EXECUTIVE COMMITTEE
Annual Report
Mike Nyinaku
Chief Executive Officer
Mike founded BEIGE Capital, in 2008, after a successful career as a Professional
Accountant for Ten (10) years.
As Chief Executive Officer, Mike has nurtured the growth of BEIGE Capital from its
inception to its current status as the leading Savings and Loans Company in Ghana.
As Director of Finance (between 2001 – 2008) for OICI-GH – a US based NGO; Mike
had responsibility for providing financial planning, management, capacity building
and technical advice on multiple community development programs in Ghana and
across West Africa. Prior to this, he trained as a Finance and Audit specialist with
Deloitte & Touché.
Throughout his career, Mike has demonstrated continuous leadership in business
excellence, technical skills and project execution. As award winning entrepreneur,
highly regarded as one of Ghana’s emerging business leaders, he features prominently in many speaking engagements aimed at
promoting thought leadership, youth and business development.
Add
He is a member of the Association of Certified Chartered Accountants (ACCA)
“Throughout his career, Mike has demonstrated continuous
leadership in business excellence, technical skills and
project execution.”
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EXECUTIVE COMMITTEE
Charles Odonkor
Deputy Managing Director
Charles has built extensive banking experience for over thirty (30) years, with twenty
(20) years at senior management level.
He joined BCSL with a wealth of banking experience having worked both in Ghana
and abroad.
In Ghana, Charles worked with Ghana Commercial Bank (GCB), the Metropolitan
and Allied Bank (now UT Bank) and United Bank for Africa (UBA). He was a founding
member of the team who set up Metropolitan and Allied Bank and UBA Ghana Ltd.
He worked with the GCB London Office and has working exposure with Citi Bank
and Natwest Bank both in the United Kingdom.
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Prior to working with BCSL, Charles was the Head of Corporate and Regional Director at UBA Ghana Ltd responsible for majority of their 26 branches nationwide. He occasionally stepped in as Acting MD of UBA Ghana Ltd.
He is an Aluminus of Central University College and holds a qualification in ACIB, UK.
“Charles has built extensive banking experience for
over thirty (30) years, with twenty (20) years at senior
management level.”
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EXECUTIVE COMMITTEE
Annual Report
Louisa Laryea
Chief Risk Officer
Louisa is a highly principled personality and a stickler for accuracy. An astute
Chartered and Certified Accountant, whose occupational biases lean strongly towards
tasks and people.
Louisa’s professional career spans over fifteen (15) years, through which her
experience, wit and verve have propelled her currently to the position of Chief Risk
Officer with BCSL.
Among a number of academic disciplines she has successfully pursued both locally
and internationally, are Executive Masters in Human Resource Management at the
University of Ghana Business School; and Project Management in Arusha, Tanzania.
Louisa has effectively led the Finance and Administrative functions of a number of
reputable institutions including: Starlight West Africa; European Union/Government
of Ghana Microprojects; and Planned Parenthood Association of Ghana, prior to joining BCSL. Her strengths are palpably
demonstrated in Financial Analysis & Reporting; Compliance; Risk Identification and Management.
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“Louisa is a highly principled personality and a stickler for
accuracy. An astute Chartered and Certified Accountant,
whose occupational biases lean strongly towards tasks and
people.”
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Annual Report
EXECUTIVE COMMITTEE
Dawda M. Hafisdeen
Chief Finance Officer
Dawda has built a wealth of experience spanning about ten (10) years in Banking
and the Financial Services sector. He started his career with Badiko, Suglo &
Associates, a firm of Chartered Accountants and later joined the Audit Department of
Intercontinental Bank Ghana Limited (now Access Bank.)
He worked as a Resident Controller at branch, Head office, Foreign Operations,
Treasury and Investment Banking and garnering deep understanding of all the
rudiments of modern day banking in the process. He led several audits and special
investigations at the Bank.
Since joining BCSL in 2011, Dawda has worked in various capacities in Business
Development, Credit Risk Management and was the Chief Operating Officer before
assuming his current role. He led the Company’s growth strategy to the western part
of Accra and the Ashanti Region.
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He holds a Bachelor of Science degree in Administration, (Accounting Option) from the University of Ghana Business School
and a Master of Business Administration in Finance from KNUST Business School. He is a Chartered Accountant and a
member of the Institute of Chartered Accountants, Ghana.
“Dawda has built a wealth of experience spanning about
ten (10) years in Banking and the Financial Services sector”
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EXECUTIVE COMMITTEE
Annual Report
Edwin Lucas Randolph
Chief Operating Officer
Edwin has over sixteen (16) years experience in Banking and has worked in different
capacities in the Industry; coordinating and chairing national and international
projects.
Prior to joining BCSL he worked as the Head of Operations at the United Bank for
Africa (UBA). He also worked with the Foreign and Domestic Departments of the
Merchant Bank Ghana now UMB.
Edwin is an organized and focused individual with excellent skills in Banking.
He has a flair for innovation and initiative, a leader with the ability to achieve
organizational goals, drive change and achieve objectives through good corporate
governance.
Edwin is an Associate of the Chartered Institute of Bankers - Ghana. He also holds a
Certificate from the Alliance Française (DELF and DL).
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“Edwin has over sixteen (16) years experience in Banking and
has worked in different capacities of Banking; coordinating and
chairing national and international projects.. ”
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Annual Report
EXECUTIVE COMMITTEE
Patrick Nathan Ofosu
Chief Marketing Officer
Patrick is a Senior Marketing, Sales and Project Management professional with
over twenty-five (25) years hands-on experience spanning three corporate sectors;
FMCG, Banking and Telecommunication of which nineteen (19) years has been in
management.
Patrick began his career at Nestle where he worked in both local and international
environments across Europe, Asia and Africa, and has occupied different positions in
Marketing and Sales. He exited Nestle as the Category Business Manager for Cocoa
Beverages.
In Banking, Patrick was part of the Senior Management Team and Group Head for
Retail and Consumer Banking at Guarantee Trust Bank (GT Bank) responsible for the
Profitability of the unit and led the bank’s branch expansion strategy across Ghana.
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He was a strong commercial pillar at Airtel, where he managed Customer Acquisition for the Youth and Mass segments. He
also led the Marketing aspects of the Acquisition, Merger and Migration of the yuMobile at Airtel Networks Kenya. Before
joining BCSL, Patrick was the Head of Project Management Office and Business Transformation & Excellence at Airtel Ghana
Limited and was leading four key projects that transformed the organization’s profitability.
He is holds an International Executive MBA – International Business from the Paris Graduate School of Management and a
Post Graduate Diploma and Certificate in Marketing from the Chartered Institute of Marketing –UK.
He is a Member of the Chartered Institute of Marketing (MCIM), UK and The Chartered Institute of Marketing, Ghana.
“Patrick has worked in both local and international
Organizations across Europe, Asia and Africa, and has
occupied different positions in Marketing and Sales.”
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Add
we are
THE BEST
The BEST SAVINGS & LOANS
COMPANY 2015
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2015
Annual Report
Executive Summary
Throughout 2015, the focus in the Company’s service
delivery continued to remain on Relationship Banking, with
heightened attention on significantly growing the Deposit
Book. The intervention deployed in the achievement of this
objective is the pursuit of Excellent Service Delivery. The
quality of service delivery was key in BCSL’s operations as the
bank’s success is significantly hinged on client confidence and
acceptability of the brand.
In spite of the unevenness in the turnout of the general
economy and particularly the financial sector, BCSL
maintained its lead position among the tier 2 category of
banks in Ghana. The Company is however not unaware of
the aggression displayed by its competitors, therefore, the
business efforts of the Company were typically anchored on:
Competitive Mobilization and Retention of Deposits –
leveraging on gains from our visibility and branch network.
Deposits Mobilization
The Company, throughout 2015, pursued a strategy of
Relationship Banking with an obvious bias towards Deposit
Mobilization and retention of same. A considerable worth
of effort was also exerted in the area of boosting Demand
Deposits, where various targets were set for all staff for
guidance towards achieving the opening of Current and
Savings accounts and further ensuring that relationship with
clients was continuously nurtured to get these accounts
funded. This concept of Relationship Banking was aimed at
attracting and retaining clients for bigger volumes of business
while delivering a delightful and prompt customer service at
the same time. This further meant that Relationship Officers
who generated Deposits and Investment business, remained in
touch with clients, sought and ensured a mutually beneficial
business relationship with the latter. This concept was and is
still one, which supports holistic banking, thereby impelling
the Relationship Officer to attain considerable control over
the respective business activities of Deposits taking as well as
Lending to clients and prospecting – all in one venture.
Appointment of Deputy Managing Director (DMD)
In November 2015, the Company appointed a DMD in the
person of Charles Odonkor. Charles was formerly with United
Bank for Africa (Ghana) Ltd as Regional Director, Retail and
Commercial Banking. He brings on board a depth of relevant
universal banking experience, spanning over Thirty (30)
years.
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Bank of Ghana (BoG) On-Site Examination
The Central Bank conducted their annual on-site inspection of
the operations of BEIGE Capital Savings and Loans Ltd during
the last quarter of the year. The examination which went on
smoothly, was the third in a row since the Company became
a Savings and Loans Institution. Each successive examination
was an appreciable improvement upon the previous. Over all
the Company was rated ‘B’ - which translates as Good.
•
•
•
•
International Relations: A delegation led by the CEO at the Old Mutual Corporate Office,
Johannesburg South Africa.
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2015
Annual Report
Executive Summary
Statutory Audit
The External Auditor conducted the end of year statutory audit alongside the migration to the International Financial Reporting
Standards (IFRS). Ahead of this, was a training facilitated by Morrison & Associates (External Auditor) on the guidelines and
requirement for the IFRS migration.
International Relations – Old Mutual & Bidvest Bank
The Company has always passionately believed in knowledge sharing, continuous capacity-building as well as a highly confident
work force. For this reason, and as part of its plan to leverage on international relationships in the industry, the Management
of BCSL, in December 2015, paid a courtesy visit to Old Mutual Africa Head Office in Johannesburg, South Africa. The visit
was organized in partnership with Old Mutual Ghana, with the view of strengthening the relationship between the two (2)
Companies. A reportage of this visit was carried in the Business & Financial Times newspaper as well as the Daily Graphic.
The Management of BCSL also paid a courtesy visit to the Head Office of Bidvest Bank Ltd (BVBL) in Johannesburg, South
Africa. BVBL is a commercial bank in South Africa, founded in 1998 and owned by Bidvest Group. Due to the fact that they
operate a similar model as BCSL, the delegation chose to interact with BVBL to exchange views and obtain some insights into
how banking is done elsewhere. The persons who made the delegation were randomly selected across various departments of
the Company.
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The delegation on tour at Old Mutual in J’berg – From left: Head, Corporate Banking, Alex; CFO, Dawda; Cluster Head, Afia; CEO, Mike; IT
Applications Lead, Peter; and Credit Risk Manager, Jonathan
BCSL, as a forward-looking company and a well-coordinated one, each year, draws its strategy, work programme and budget
by which it is guided in the ensuing year. 2015 was no exception. The Company spent substantial time in the fourth quarter
strategizing and drafting its plan for 2016. The Company brought together, Heads of Departments, Cluster Heads, Branch Chief
Executives and Functional Team Leads to carry out this exercise. After extensive consultation and collective introspection as a
Company, the SWOT (Strengths, Weaknesses, Threats and Opportunities) was projected, out of which plans for the business
direction were determined. In summary, the focus of the Company in 2016 is to grow its Deposit Base significantly, thereby
consolidating its footing as the Industry Leader, as it positions itself to become an SME Bank of choice in the foreseeable future.
This has been approved by the Board and currently provides the road map for the company’s operations in 2016.
.
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Annual Report
SOP - 16
The flow chart below, depicts a summary of the Company’s Strategic Operational Plan (SOP) for 2016 at a glance.
In 2016, the Company will continue to grow its deposit base, through:
• Expansion of customer base;
• Expansion and increase in business and revenue lines;
• Pursuit of lower cost deposits; and
• Marketing of demand deposits (through extensive account-opening).
SOP 16SOP ‘16
Grow Deposit
Base
Where we’re going in 2016
Core Areas
of Focus
Expand
Customer
Base
Open More
Accounts / Acquire
More Customers
How we’re doing it
Open More
Outlets
Pursue More
Lower Cost
Deposits
Widen
Coverage
in Micro
Banking
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Aggressively
Sell Demand
Deposits
Place More
Premium
on Demand
Deposits
Reduce
Interest Rates
Recruit More
Marketing
Agents
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Annual Report
Branch Network
The Chart below shows some of the Bank’s branches.
• Adenta
• Madina
• Madina Market
• Haatso
• Darkuman
• Kwashieman
• Kasoa
• Ashaiman Main
• Dansoman Asoredanho
• Tema C1
• Dome
• Bantama
• Tafo
• Afful Nkwanta
• Atonsu
• Suame
• Adum
• Nima
• Mamobi
• Kokomlemle
• Alajo
• CMB, Accra
• Kokompe
• Mallam Junction
• Mallam Market
• Madina Zongo Junction
• Adenta Market
• Pantang
• Dansoman Roundabout
• Achimota
• North Legon
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• Ashaley Botwe
• American House
• Bawaleshie
• Tema Newtown
• Pig Farm
• Santa Maria
• UTC, Accra
• Kwabenya
• Abuakwa
• Paa Willie
• Ashaiman Roundabout
• Abossey Okai
• Gbegbeise
• Alabar
• Roman Hill
• Dzorwulu
• Kronum
• New Abirem
• Pokuase
• Kasoa No. 2
• Ashaiman Market
• Timber Market
• Lapaz
• Sokoban
• Okaishie
• Drug Lane
• Opera Square
• Weija
• Spintex
We project to have a Nationwide coverage by the end of 2017
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2015
Annual Report
Key Results Areas (KRA)
In achieving its objectives,
deployed five (5) interventions;
BCSL
• People, Competencies & Control;
• Place (Office Space & Ambience);
• Processes of Work Administration;
• Product; and
• Service.
These are summed up in what the Bank
has dubbed Project PISS – which seeks to
ensure that BCSL is well positioned and
fitted with the requisite competencies
to meet the growing sophistication in
the business.
Add
With the redirection to focus on the
people through Project PISS, BCSL
will continue utilizing enhanced
recruitment
methods
to
reveal
candidates’ personality for every job
role.
People, Competencies & Control
BCSL, since inception has shown
progressively, that it is indeed an avid
watcher of the quality of its workforce
in the precise delivery of the Company’s
strategy. The Company continued
throughout the year to hire, nurture and
harness employee talent by consistently
training, re-orienting and participating
in
staff
capacity
enhancement
programmes. The training curriculum
and form were made even more
relevant to each category of staff in
2015. Staff trainings were conducted for
smaller groups of staff, mostly at cluster
level; Branches; Monthly Performance
Reviews (MPRs); and at the BEIGE
Academy. The Company participated
in outdooring The BEIGE Talent (TBT)
programme, whose concept is one of
engaging young ingenious university
26
graduates who had completed the
National Service, for training, coaching
and grooming, in order to efficiently
and organically fill job vacancies that
come up as the Company expands its
operations.
Place
For orderliness and ease of doing
business
by
clients
and
staff
respectively, the Company motioned to
ensure that each of its office locations
had a comfortable, presentable and
standardized ambience. The objective of
this was to further enhance the brand
to ensure that clients who walked
into the banking halls were extremely
comfortable, delighted and guaranteed
a standardized banking experience
and service regardless of the branch
location or size. In 2015 therefore, the
Company visibly embarked on a facelifting project across various branches.
This project is a work-in-progress and
therefore expected to continue in order
to preserve the appeal of the brand.
Process
In every growing and successful
organization, a continuous review of
work processes is an integral part of
operations. As a result, BCSL, in 2015,
devoted a good portion of its time to
review and redraft some critical work
process flows and policies. The objective
of this was to shorten certain identified
work procedures by making them less
laborious but at the same time controltight. This is because, the Bank has
significantly evolved and keeps evolving
at an astronomical pace. This speed of
growth and spread obviously requires
firmer controls as much as efficiency.
In this regard, BCSL recognizes that in
order to maintain its lead and stay ahead
of the competition, its work processes
have to be even more robust, wellorganized, clear and efficient - at the
same time, simple enough to compete
and to make banking an almost effortless
and flawless experience for its clients.
During the past quarter therefore, the
Company thoroughly reviewed its
Fixed Term Deposit (FTD) Booking
and Redemption procedure. This saw
the Bank setting up an FTD Centre
with well-thought-through process
flows, resources and man-power. The
certificate was also re-designed and
adopted for use. The Bank now prides
itself with a 48-hour delivery time on
the establishment and dispatch of FTD
certificates to clients.
Product
In order to ensure that the products
and services of BCSL remain even more
attractive to clients, the Company
reviewed its bouquet of product offerings
for modification and enhancement. This
is a continuum which the Bank expects
to evolve even further in achieving
business success.
Service Excellence
The essence of service quality could
not be discounted. 2015 was pivotal
in the massive awareness creation of
delivering a delightful customer service.
In this regard, the Company organized
customer-focused programmes, during
which clients of BCSL were appreciated,
while obtaining feedback on the quality
and value of our services. The Company
interacted regularly with its customers
through phone calls and business
location visits. The peak of these
customer engagements was an event
organized in Kumasi during the second
quarter, with an intention to show
gratitude for the loyalty of customers.
The interaction was also used as an
opportunity to strengthen the business
relationship by obtaining a deeper
understanding of their respective trades
and trade needs in order to do more
mutually beneficial targeted business.
2015
Annual Report
Speaking at the ceremony, the CEO proposed the idea of an SME bank structure to serve as a bridge between the rural banks,
Microfinance Institutions (MFIs), Savings and Loans companies on one side and Commercial Banks on the other side. “An
SME bank is not a communal bank. It may not be as big as a commercial bank but is much bigger than a rural bank, MFIs and
Savings and Loans Companies; between these portfolios, there can be a structure where we can merge all of them as part of its
national expansion drive…” Mr Mike Nyinaku further announced that the Company will be opening a prestige banking office
in the garden city, Kumasi, in the near future. This move is intended to allow for the creation of a centre, that would oversee
the entire business of the Company from the middle to the northern parts of the country.
ddA
27
2015
Annual Report
Report of the
Chairman
Add
28
2015
Annual Report
Report of the Chairman
Distinguished shareholders, colleague members of the Board,
it is a delight to present to you the performance and outlook
of BCSL for the year 2015. The year in retrospect was an
eventful one, both for the local economy and the Company
– characterized by protracted challenges in the energy sector,
adversely affecting business and employee morale. These
notwithstanding, the Company steadfastly held its head up,
emerging as the best Savings and Loans Company of the year.
Business Environment
The local economy during 2015, was not significantly
different from the previous year. The Cedi continued its
poor showing against the world’s major trading currencies,
especially the United States Dollar. Particularly in the second
quarter, spiraling into the third, the unpredictability in
the rapid downward trend of the performance of the Cedi
was evidently pronounced. This was in spite of the easing
pressures of uncertainties in the foreign exchange market
at the beginning of the third quarter. The improbability in
the foreign exchange market continued to fuel inflation and
inflationary expectations which again caused depositors to
want to hold their investments in the US Dollar, thereby
breaking their term deposits fixed with the Company much
earlier than agreed. Inflation at the beginning of the year was
notched at 16.4%, rising steadily but marginally, peaking at
17.9% by July, then easing gradually in August but begun
inching up once more from September, closing the year
at 17.7%. This seeming worsening trend has largely been
attributed to the energy crisis, increases in utility tariffs and
the debt profile of the country.
The not-too-encouraging inflationary trend, coupled with
plummeting oil prices on the world market in 2015, the year
under review stayed difficult, as it significantly reflected the
effects of the currency depreciation against the international
currencies and its implications on petroleum pricing,
transport costs as well as other tradable goods and services.
The cost-push effects from the energy sector challenges and
rising inflation expectations added to the rising inflation as
well. All the measures of inflation however, continued to rise
in the last four (4) months of 2015, suggesting heightened
underlying pressures which could push up headline inflation
over the anticipated figures in the first ensuing months of
2016. This erratic inflationary trend therefore became a key
indicator for the Company in the timing and implementation
of its business plans (SOP 15) as there appeared to be ample
signals of a poorly performing loan book if the Company
had committed to
full
scale
loan
disbursements.
Performance
the Company
of
Despite
the
c h a l l e n g i n g
economic
and
industry conditions,
the Company made
a Profit Before Tax
(PBT) of GHS10.8m
in the year under
review,
returning
9%
to
average
Shareholders’ funds.
This is a marked improvement over that of 2014 and 2013
respectively. Our decision to invest in our growth in the prior
years has begun to yield some gains.
ddA
The pronounced growth in our Total Assets of GHS818m, a
51% growth over the 2014 position is yet another affirmation,
that our dream to become the leading SME bank in the
Country by the year 2020, is firmly on course.
Not only did the Company’s Total Assets grow by 51%, its
Deposit Book was equally impressive at 53% compared to
same period in 2014. Total Income grew by 41% and this
emanated largely from a Loan Book of GHS416m, which had
itself increased by 33% in the year under review.
While the industry watchers and economists remain
somewhat hesitant in projecting a positive out-turn in 2016
because of the general polls scheduled for November, the
Company is confident of its strategy for 2016, estimating a
much higher than 9% return on Equity.
Stated Capital
The Company ended the year with a stated capital of GHS120m.
This far exceeds the Regulator’s equity requirement of
GHS15m and further presents a comfortable indication of the
Company’s resolve to take advantage of bigger volumes of
business in the industry.
29
2015
Annual Report
Staff
But for the unrelenting performance of the energetic and hardworking employees of BCSL, these successes and growth in
business would not have been chalked. The year under review opened with a total workforce number of Four Hundred and
Thirty-Five (435). By December 31, 2015, the Company had Five Hundred and Sixty-One (561) members of staff on board.
This is a 29% surge in the staff strength compared to that of 2014. As would be seen in the report of the Chief Executive
Officer, BCSL conducted for members of staff, a number of training and capacity enhancement programmes, both locally and
internationally. The objective here was to ensure that the people at the helm of affairs in the Company, are skillful enough to
execute the mandate of BCSL. Recruitment for senior job roles were also made to augment the efforts of the existing team as
the business grew considerably over the year.
Awards
The Company’s impressive performance in 2015 did not go unnoticed. BCSL won an award in the category of SME Finance
Leader of the year. This awards event was organized by Instinct Business Magazine, an initiative owned by an organization
called Instinct Wave.
Another award conferred on the Company was the Best Savings and Loans Company in 2015. This took place at the Made In
Ghana Awards ceremony held at the Banquet Hall, State House in Accra. BCSL at this event was inducted into The Made in
Ghana Hall of Fame. The organizers were the Entrepreneurs’ Foundation of Ghana.
Corporate Governance
Add
The Board of Directors met nine (9) times in 2015 at Committee level as well as at full Board sessions. During these meetings,
the quarterly strategies, budget and operations of the Company were reviewed to ensure that the internal controls, procedures
and policies were satisfactorily adequate. The Board continued to provide guidance to Management, in its bid to ensure that
regulations and statutory requirements were duly observed.
Corporate Social Responsibility (CSR)
BCSL recognises the fact that it operates in an environment to which she has to give back. With this understanding, the
Company has always considered supporting various social endeavours with themes that resonate with the brand. These include,
youth education and capacity enhancement programmes; benevolent societies and environmental conservation activities. In
December 2015 therefore, the Company donated an amount of GHS15,000 to the Ghana Police Service in support of the Police
Hockey Team as they embarked on a trip to Lusaka, Zambia to participate in the African Hockey Tournament.
BCSL also sponsored the Greater Accra Hockey Knockout Tournament, where Trustees of the Social Security and National
30
2015
Annual Report
Insurance Trust and the Extinguishers of the Ghana National Fire Service clinched the men’s and women’s titles respectively,
at the Theodosia Okoh Stadium. This was the third year in succession that BCSL sponsored this tournament.
The Company also supported the Ghana Economic Forum 2015, Ashesi University Career Fair and Salt and Light Ministries
with a total of GH¢24,000.
Add
As we move into 2016, we are even more poised than ever before, with a clear focus on maintaining our leadership amongst
the Tier II category of Banks. It is the firm expectation of the Company to maximise Return on Equity even more significantly.
This is based on the anticipated gains from the increase in branch network; the introduction of additional business lines as well
as the deployment of a more robust banking application. Though the business terrain is not getting any less competitive, I am
fully persuaded, that with the current Management and workforce we have, coupled with the strategy and human resource
development plan set in place, bigger and more momentous successes await BCSL.
I finally wish to take the opportunity to acknowledge the unflinching support of my colleague Directors on the Board, for a
decent 2015 and encourage all to continue working spiritedly as we brace through yet another year, trusting that 2016 would
outperform the previous year.
*source of inflationary trend ratios: Ghana Statistical Service
31
2015
Annual Report
ddA
32
2015
Annual Report
Report of the
Chief Executive Officer
Add
33
2015
Report of the Chief
Executive Officer
Annual Report
The year 2015, in my sincerest opinion, was not to be spectacular. A difficult one
indeed it was for businesses in Ghana. The backlash of the protracted energy crisis; the
sprawling inflation; increase in taxes and levies; as well as a crumbling local currency,
could not be overlooked. Nonetheless, among other things, the tenacity and resolve of
Management and staff, propelled the Company to emerge at the top.
Industry Specifics
The banking sector continued on its growth path, albeit not without challenges. Apart
from the general economic challenges which greatly affected the sector, specific
industry occurrences also put a number of financial institutions, especially, those in
the non-bank category to test. The collapse of some micro-finance institutions and the
Regulator’s resolve to close down unlicensed companies were quite characteristic of
the year. This was occasioned by the fact that some Microfinance Institutions (MFIs)
were discovered to have breached regulatory requirements.
This development was quite a catastrophic one for the industry as a whole, as it
immediately seemed to have shaken the confidence of the market, clients and wouldbe clients. Similarly the BoG, being the Regulator, came under sharp criticism for failing to be proactive in their regulatory
responsibilities in the past.
Add
Non-Performing Loans (NPL) increased from the 2014 position of 11.3% to 14.1% in 2015 in the sector. This surely affected
profitability in the sector. This then largely formed the basis of the Company’s decision to disburse only strategic and predictable
risk assets.
Financial Performance
1. PROFIT OR LOSS
A. Interest Income
The Company’s Interest income grew by 45% from the 2014 position to GHS 171.5m in 2015. This however fell short of our
target by some 17.5%. The variance resulted largely from the cautious approach adopted in credit delivery which resulted in a
slowdown in granting loans, thence missing the loan portfolio target.
Interest from loans accounted for 80% of the total interest income while investment income contributed the 20% compared to
the 12% contribution in 2014. The slowdown in the loan disbursement gave way for a growth in money market investments
resulting in the increase in investment income by 122%.
Approximately 40% of our interest income on loans of GHS138million was derived from Trade finance facilities which
accounted for 42% of our loan book at the end of 2015. Transportation and Services follow with 35.6% and 16% contribution
to the total interest income from loans respectively.
B. Other Income
Fee income fell short of target for the year under review achieving only 38%. This was clearly as a result of our inability to
disburse as projected for 2015.
Commission and other income derived from remittances and other banking services could also not yield the projected amount
with a variance of 55%. Our inability to roll out some new remittance products and collection services on schedule was
responsible for this shortfall.
34
2015
Annual Report
C. Interest Expense
A positive variance of 24% was recorded in interest expenditure
for the year. While we managed and controlled the cost of
funds, the major reason for this positive variance emanated
from the inability to meet the deposit target. Interest cost of
GHS129million for 2015 was however 49% higher than that
of 2014 but marginally lower than the growth in the deposit
portfolio of 51%. This reflect control of our cost of funds as
interest rates generally increased marginally in 2015.
Interest expenditure on borrowing increased from 4.2%
of total interest expenditure to 7.8% in 2015 while interest
expenditure from customer deposit accounted for the
remaining 92.2%. This resulted from the increased borrowing
in 2015 compared to 2014. An increase in Bank borrowings
provided a more stable and long tenured funds to support onlending. We will pursue some more debt financing options in
2016 from both local and international sources.
With a total of GHS163million in expenditure, Interest
expenditure on deposit and borrowing accounted for 79% of
total expenditure compared to the 71% in 2014. This increase
in percentage was as a result of Interest expenditure growing
by 49% while operating expenditure was contained at about
the same amount as 2014.
Approximately 52% of the interest expenditure on deposit
was accrued on Fixed Term Deposit with transaction values
of GHS1million and above even though they constitute just
45% of our total Fixed Term Deposit portfolio. This is due to
the high interest rates usually demanded by this category of
depositors who tend to have high bargaining power.
D. Operating Expense
GHS34.2million was spent on operational expenses for the
year, approximately under 1% higher than 2014 expenditure.
This was achieved through tight budgetary controls,
expenditure monitoring and reduction in spending in noncore activities. Through these measures, about 21.6% of
budgeted operating expenditure was saved. The major areas
where cost was largely contained were, personnel cost, repairs
and maintenance, and vehicle running.
General Administrative expenses continue to be the main
contributor to our cost with 34% of the total operating
expenditure same as 2014. The main contributor to the
Administrative expense line are vehicle lease and rental
EXPENDITURE ITEMS
2015
DIRECT OPERATIONAL COSTS
2,699,852
PERSONNEL COSTS
5,638,343
ADMIN
11,763,560
TRAVEL and Transport
3,579,653
PUBLICITY
1,974,320
REPAIRS & MAINTENANCE
1,358,370
DEPRECIATION
4,662,875
TRAINING & DEVELOPMENT
1,753,698
OTHER OVERHEADS
826,800
ddA
TOTAL 34,257,471
charges, office rental charges, Security Charges and Electricity.
This is followed by personnel cost at 16% down from the
18 percent in 2014. Repairs and maintenance contribution
reduced significantly from 8% in 2014 to 4% in 2015. Our
operating cost per branch and also per staff both reduced
significantly pointing to a greater level of efficiency in our
operations in 2015. Operating cost per branch reduced from
GHS587,067 in 2014 to GHS539,682 in 2015, while operating
cost per staff also reduced to GHS61,051 in 2015 from GHS
78,275 in 2014.
Compared to the industry average, our operating expenditure
to total income was about 19% while industry averaged 48%.
E. Profitability
The year-end profitability of GHS10.8million was a much
improved result over 2014 position of GHS4.8millon, an
increase of 125%. The current year’s profit represent an
average return on equity of 9%, an improvement over the
previous year’s 6%.
35
2015
Annual Report
Add
The targeted profitability of GHS35million was missed by
71%. This was largely due to the huge shortfall in the actual
achievement for service and other income by over 55% as
well as other income lines such as interest income.
2. BALANCE SHEET
A. Assets
Total Assets grew by over 50% in 2015 to close the year
with GHS818million. This was represented by Cash and
Bank balances constituting 5% of the Total Assets, Loans and
Advances 51%, Investments 29%, and Property, Plant and
Machinery 8% and Other Assets of 7%.
The Company held about 34% of its Total Assets in Cash
and Investments. This comprised cash and bank balances of
GHS41.8million Investment with other financial institutions
of GHS236million. The Company had to balance liquidity and
return by ensuring a good mix of non-earning liquid assets
and earning assets. 12% of the cash and bank balances were
held in vaults to meet immediate customer withdrawals.
Investments Placements with other financial institutions
36
grew the most during the year by 124%. With the cautious
approach adopted towards credit delivery, which is evidenced
in the loan portfolio growth of 33% in 2015, excess liquidity
had to be invested in the money market. The total investment
in the money market also represent 37% of the deposit
book, providing a strong secondary liquidity source and also
contributing 36% of the earning assets.
These money market investments are held with Banks,
Savings and Loans Institutions, other Non-Bank Financial
Institutions, as well as Fund Managers. In the wake of
mushrooming financial institutions in the country, we
carefully select institutions with whom we place funds after a
rigorous due diligence is conducted and counter party limits
established.
Fixed Assets Acquisition
During the year the Company invested heavily in some Fixed
Assets acquisition to improve business performance and
position us for the next level of our growth.
2015
Annual Report
We invested specifically in;
➢ Acquisition of a new Core Banking Application
➢ A fully-fitted Ultra-Modern Tier II Data Centre
➢ Construction of New Corporate Office
➢ An Academy for Staff Training
➢ Branch Offices
➢ Motor Vehicles
➢ Wholesale Replacement of old Computers
These investments, we project, will help increase our efficiency and propel our growth in 2016 and beyond.
Loans and Advances
From the 2014 position of GHS312million, the loan portfolio grew 33% to close at GHS415million in 2015. Loan continue to
be our major source of income contributing 79% of the total income of the company and 64% of earning Assets. The slowdown
in credit delivery was due to the challenging business environment which affected a lot of businesses.
ddA
Trade finance loans, lending to the transport and haulage sector as well as services sector dominate our loan portfolio
contributing 42%, 40% and 13% respectively to our total loan book.
Non-Performing Loans increased from 3% in 2014 to 4% of total portfolio at close of the year 2015.
B. Liabilities
Deposit Book
The deposit book of BCSL grew by 51% from 2014 position of GHS412million to GHS622million at the end of 2015. This
was however a 93% achievement of the target of GHS667million. The growth resulted mainly from the Fixed Term Deposit
products which grew year on year by 53% and also account for 93% of the total deposit portfolio at the end of 2015.
Despite the marginal increase in rates in the country in 2015, we were able to hold down our cost of deposits which grew by
49% compared to a 51% growth in our deposit book.
The Bank’s deposit mix could not improve during the year. The contribution of demand deposit to the total portfolio rather
reduced from 9% at close of 2014 to 7% by the end of 2015. The table and graph below shows how demand and Fixed Term
Deposits contributed to the deposit portfolio through 2015. Though the demand deposit has grown by some 30% from the 2014
position, it was out performed by the 53% growth in the Fixed Term Deposit which added over GHS200million to the deposit
Portfolio.
About 42% of our deposit book is contributed by clients with volumes of GHS1million and above. These are usually big players
in the finance industry and therefore dictate market dynamics. Typical clients in this category are the fund managers, corporate
entities, and very high net-worth individuals. The next tier of depositors also place funds ranging between GHS100,000 to
GHS1million and form about 28% of our deposit book. Though also sensitive to rates, this category does not control market
forces as compared to the first category.
37
2015
Annual Report
Thirty-one (31%) percent of our deposits portfolio is generated from clients with transaction sizes below GHS100,000. This
category however account for about 99% of our total clientele base. We will continue to deepen our relationship with these
customers in other to increase business with them as they show high growth potential.
Deposit and
Investment Bands
Amount
Percentage
Concentration
Number of
Clients
Percentage
Concentration
Below GHS100,000
191,457,437
31%
255,256
99%
GHS100,000 - GHS1,000,000
175,116,094
28%
1,444
1%
Above GHS1,000,000
256,266,305
41%
292
0%
Grand Total
622,839,836
100%
256,992
100%
DEPOSIT MIX TREND BY QUARTERS
MARCH
JUNE
SEPTEMBER
DECEMBER
Demand Deposit
31,346,075
42,737,166
43,322,189
41,520,841
Fixed Term Deposit
420,600,102
502,283,103
528,593,165
581,318,995
Grand Total
451,946,177
545,020,269
571,915,354
622,839,836
Add
700,000,000
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
Demand Deposit
Fixed Term Deposit
Grand Total
0
Clientele Numbers
The total number of depositors increased from about 150,000 in 2014 to 256,992 at the end of 2015. Individual customers
accounted for 97% of the total clientele numbers and contributed 54% of the total deposit of GHS622m with the 3% of
customers being corporate institutions. We will continue to roll out programmes into 2016 to significantly increase the number
of individual customers of the bank as we position ourselves to compete in the retail banking space.
38
2015
Annual Report
Maturity Profile and Deposit Retention
With a high concentration of our deposit book in Fixed Term Deposit, deposit retention is key to our continuous growth.
Despite the huge maturing volumes, more than 85% of maturing term deposits get rolled over giving a very stable and growing
deposit portfolio. We have outlined measures aimed at increasing the demand deposit concentration in our deposit mix. This
include deepening the relationship with our existing customers and also increasing the number of relationship officers and
rolling out a Direct Sales Project among others.
The maturity profile of our deposits is detailed as follows;
Maturity Periods
Next 30 days
30 - 90 Days
90 - 180 Days
180 – 360 Days
Total
Deposit Volume
80,662,770
194,885,176
188,953,053
159,839,836
622,839,836
Deposit maturity falling due in the next 30days include all demand deposits of over GHS41million.
ddA
We believe in our resolve to become a world-class Bank of Ghanaian origin and we count on your support in this journey
which we have already made remarkable footprints.
Thank you.
About Us
• > 60 Offices, > 1000 Staff
• 5 Regions
• 8 years
• Annual growth = 250%
• Ghanaian Bank
• Total Assets
GHC 1bn
2014
About CEO
• Ghanaian
• ACCA Fellow
Ghc
Total Assets
Deposits & Borrowings
Stated Capital
2013
2012
Ownership
Total Assets
Deposits & Borrowings
436m
247m
40m
Total Assets
127m
Stated Capital
Total Assets
?
Deposits & Borrowings
?
90m
297m
99m
2016
• Medium term debt
• Equity partnership
Ghc
2017
540m
Stated Capital
Deposits & Borrowings
Investment Opportunity
• Wholly owned subsidiary of The
BEIGE Group (TBG) – a local
Investment firm.
• Total Assets >GHC 1.4bn ($350m)
• Group Portfolio Banking & Finance,
• Real Estate, Logistics ...
Stated Capital
?
Total Assets
?
Deposits & Borrowings
?
Stated Capital
2015
Total Assets
Deposits & Borrowings
Stated Capital
20m
?
818m
667m
120m
Our Direction - SOP 2016
• Expand Market Share & Outreach -SME Bank of choice
• Introduce more Funds Transfer Platforms
• Increase volume of Demand Deposits
• Secure Equity Partnership
39
2015
5-Year Financial Performance
-Trend
Annual Report
KEY INDICATOR
2011
2012
2013
2015
10
38
60
126
178
EXPENDITURE
9
32
58
121
167
PROFIT /(LOSS) BEFORE TAX
1
6
2
5
11
TOTAL ASSETS
38
127
297
540
818
TOTAL LIABILITIES
30
102
251
439
681
NET ASSETS
8
25
46
102
137
STATED CAPITAL
7
20
40
90
120
LOAN PORTFOLIO
26
71
200
313
416
DEPOSITS
29
89
234
413
623
BORROWINGS
1
7
13
24
44
PORTFOLIO @ RISK
6%
7%
9%
8%
4%
NON-PERFORMING LOANS / GROSS PORTFOLIO
1%
8%
2%
6%
4%
RESERVE RATIO
2%
4%
3%
2%
3%
LOAN / DEPOSIT RATIO
91%
77%
84%
73%
64%
CAPITAL ADEQUACY RATIO
22%
20%
15%
19%
17%
DEBT TO EQUITY
6%
29%
29%
23%
32%
NET PROFIT / INCOME
37%
42%
22%
18%
29%
RETURN ON EQUITY
30%
35%
5%
7%
9%
Add
51%
Total Assets
Figures in Millions of GHS
53%
Total Deposits & Borrowings
Key
Growth Rates
41%
Total Income
40
2014
INCOME
33%
Loans & Advances
2015
5-Year Financial Performance
-Trend
Interest Income
Annual Report
Interest Expenditure
200,000,000
140,000,000
120,000,000
150,000,000
100,000,000
80,000,000
100,000,000
60,000,000
40,000,000
50,000,000
20,000,000
-
2011
2012
2013
2014
-
2015
2011
40,000,000
12,000,000
35,000,000
10,000,000
30,000,000
20,000,000
6,000,000
15,000,000
4,000,000
10,000,000
2,000,000
5,000,000
2011
2012
2013
2014
2015
-
2011
Total Assets
2015
ddA
2012
2013
2014
2015
2014
2015
2014
2015
Cash and Investment
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
2011
2012
2013
2014
2015
-
2011
Shareholders Fund
2012
2013
Stated Capital
160,000,000
140,000,000
140,000,000
120,000,000
120,000,000
100,000,000
100,000,000
80,000,000
80,000,000
60,000,000
60,000,000
40,000,000
40,000,000
20,000,000
20,000,000
-
2014
8,000,000
25,000,000
900,000,000
800,000,000
700,000,000
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
-
2013
Profit before Tax
Operating Expenditure
-
2012
2011
2012
2013
2014
2015
-
2011
2012
2013
41
Add
We have a healthy
Balance Sheet
Total Assets
GHS 1Billion
2015
Annual Report
Information Technology (IT)
The Company very much recognizes that
its business is pivoted on efficient, reliable,
robust and modern Information Technology.
In maintaining and further increasing the
volumes of business therefore, BCSL in 2015,
continued to keep its focus on investing and
strengthening what would be a state-of-theart Management Information Systems (MIS)
platform to ensure a superb and seamless
quality of service to customers and potential
customers. Among a number of interventions
deployed were:
• Automated Teller Machines (ATMs)
and their connection to the Ghana Inter-bank
Payments and Settlements System (GHIPSS) platform. In all, forty (40) ATMs were acquired and twenty-three (23) of them so
far installed. The technology is currently being piloted, after which full deployment would be rolled out to the public in 2016.
Add
Another highlight of 2015 was the commissioning of the all-new ultra-modern Data Centre situated at East Legon, near The
BEIGE Group office. This event was witnessed by officials of the Bank of Ghana (BoG), IBM Ghana & Africa; Software Group
(SG), Management as well as the Ghanaian Media. The representatives of the BoG, expressed their profound impression about
the Centre and said they had no doubt that BCSL was poised to take the business to another level altogether. The general view
expressed by all the invited guests was one of satisfaction and affirmation of position impressions about the resolve of BCSL in
its business approach.
The CEO at the Data Centre Reps of BoG & SG unveiling the plaque
Ag. Head of IT briefing invited guests
New Core Banking Software Procurement & Deployment
Preparatory work for the implementation of a new banking application began during the year 2015. This included a number
of consultations and scoping sessions with the vendor, Temenos, as well as implementing partners, JETHRO Ltd in England
and IBM (suppliers of the hardware) respectively. This followed the visit by the Representative of IBM Africa, when they
paid a working visit to the offices of BCSL to assess the IT environment. All paper work including contracts and Service Level
Agreements (SLAs) were signed. Delivery of equipments and other hardware began as well and expected to be completed in
2016.
Talent Management
43
2015
Annual Report
The Company began the year with a staff strength of six hundred and fifty-seven (657) and ended with Seven Hundred and
fourteen (714). As with any institution in the pursuit of excellence, BCSL places an enviable premium on the development of
its workforce to ensure that the mission of the Company is spectacularly achieved. This, the Company deems to be achieved
by first attracting the most suitable candidates for existing job roles. In this regard, during 2015, as with previous years, BCSL
sponsored and partook in various job fairs and career development programmes on the campuses of selected university colleges
in the country.
Career Fair
Add
BCSL took the opportunity to explain the core mandate of the Company and to further describe the quality of employees BCSL
was interested in hiring and grooming for job opportunities that may come up. There was also a slot for career counseling for
the students which was facilitated by representatives from BCSL. The final year students and Deans of the various faculties in
the University respectively were very appreciative of the participation of BCSL and looked forward to a mutually beneficial
relationship between the two (2) Institutions in the future.
Training
Various trainings programmes (both locally and internationally) were afforded staff in the course of the year. This remain in
line with the Company’s steadfast commitment to ensuring that its workforce had the requisite skills and capacity to optimally
execute their roles. Some middle level Managers were sponsored to undertake training programmes in Nairobi, Kenya. This
training was organized by African Rural & Agricultural Credit Association (AFRACA).
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2015
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Participation in AFRACA Conference
The Company made representation during the first quarter AFRACA conference held in Nairobi, Kenya. Two (2) staff were
nominated and sponsored to attend. The essence of the conference was to provide sensitisation, partnership and support to
member institutions to provide sustainable and quality financial services to the rural folk who needed such financial assistance
to undertake farming and other related economic activities. The conference was attended by about One Hundred (100)
participants from the Continent.
It was not all learning and working. The Company took time off for a series of staff-bonding activities.
ddA
BCSL Representatives (arrowed) together with other participants at the AFRACA Conference in
Nairobi Kenya
45
2015
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Staff Time Out
In March 2015, the Company organized a fitness and bonding
session for all staff. The objective was to get staff to appreciate
the importance of wellness and keeping fit as well as to take
time off work to get to know each other and socialize. The
event was held simultaneously at the BEIGE Village Spa & Golf
Resort as well as the Leisure Centre at Burma Camp for Staff
from branches in Ashanti and those in Accra respectively. Events
In December 2015, the Company organized a corporate
Thanksgiving service at the part of the Ministry of Local
Government premises at Madina near University of
Professional Studies. The all-white dress code event was
dubbed “ASEDA 2015.” The obvious objective of this event
was to collectively show gratitude to God for successfully
ending a rather difficult year both in the domestic economy
and in the life of BCSL. Over Three Hundred (300) staff
attended the event in Accra, where the CEO gave his end-ofyear message and hinted the entire team about the Company’s
aspirations for 2016 and beyond. The CEO also took the
opportunity to officially introduce the Deputy Managing
Add
Team Celebrations
Director (DMD), Charles Odonkor, to all staff present and
admonished colleagues to lend the DMD all the needed
support to carry out his mandate.
Aerobics session for staff
A cross section of excited staff at worship
46
2015
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Add
Thanksgiving with the CEO
47
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led and managed by
competent
and Resourceful Leadership
We are
2015
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CEO Engagements
Mike Nyinaku, the CEO of BCSL was invited to speak on the theme; “Ghanaian-Owned Economy,
Setting the Agenda for Achieving it.” This was organized by Business and Financial Times.
on June 9, 2015.
T
he theme for this year’s event: Ghanaian-Owned
Economy – setting the agenda for achieving it – is so on
point to me. How nice a theme, ladies and gentlemen.
What this means to me in terms of numbers is an economy
where at least 40% of GDP is derived from the economic
activities of businesses of Ghanaian ownership…not origin.
OWNERSHIP. So I checked up the profile of the top 25
companies in Ghana in terms of contribution to GDP. Data
Add
obtained from the GRA revealed that 7 out of the top 25 were
of Ghanaian ownership. GCB leads the pack, followed by
Ghana Manganese and some others including Banks. They are
then followed closely by Nigeria with 4 and South Africa with
3. The US, Britain, France, America, etc. had two each and the
rest split amongst some non-African countries. But you and I
know that this is based on data that has been disclosed and I
can bet that if we really have to dig behind the numbers, the
concentration is not likely to be in favor of Ghana.
However, in the context of this forum, I believe that this data
is an acceptable reference point for a discussion. But HEY!
Is it NEWS TO YOU that our economy is not owned by us?
Without a doubt, all of you here are more experienced and
know better than I do so I’m not sure I’m qualified enough
to explain why the situation is so and neither am I capable
enough to propose solutions to it. For that reason, I request
that you kindly should not expect too much from me but
49
rather indulge me as I choose to share my thoughts on the
case as a growing young man.
First, I’d share my historical thoughts on how entrepreneurship
has evolved over the years in Ghana, I’d touch on why I
believe in Ghana, I’d give my opinion on PPP and most
of all I’d share a secret with you……it’s about me and the
President. You know, I’m one of his biggest fans! Almost 60
years on, following independence and one has the right to
say entrepreneurship in Ghana has evolved. I can speak of 6
entrepreneurial generations, at the least based on my limited
experience.
Generation A; These are pioneers of the trade most of whom
have passed on or are aged above 80 today. You can speak of
the legendary Asoma Banda and the late Dr. Esther Ocloo.
Then Generation B; Most of them in their 70s now…I’d
respectfully refer to Mr. Kwabena Darko. Generation C; are in
their 60s AND still very active in the game. They include my
seniors including Mr. Kofi Amoabeng, Mr. Kwabena Duffour
and Dr. Kwabena Agyei of Kasapreko. Then Generation D;
men and women in their 50s…and they include my seniors,
Edward Effah and Ken Ofori Atta. Generation E; are in their
40s…have gathered some momentum and started doing
things. They are too many and I can’t single anyone out for
now. Then my group….Generation F; …under 40 and now
trying to figure out what to do with ourselves. Permit me
to add a last group; Generation G;… I call them the ‘twitter
generation’…they are under 30 years… watch that space.
Ladies and gentlemen, I’ve with intention drawn clear lines
amongst these different generations of entrepreneurs because
each have affected and are affecting Ghana positively and
in varying ways. I personally believe that each generation
depends on and therefore stands upon the shoulders of their
predecessors to do their thing. Thus, all things being equal,
the heights that any of them attained or can attain would be
influenced not only by their skills and prevailing opportunities
at the time but also the foundations that were handed over to
them by their predecessors.
When we look around us today, it’s difficult to count 20
institutions that are aged over 30years and are of Ghanaian
2015
Annual Report
ownership. Why is this so? When you look around you
see products of the generation Cs… and Ds…mostly. Does
it suggest that generations A’s and B’s…didn’t produce
anything?…NO. I strongly disagree. They did, but you know
what…they did not have the opportunity to fulfil their
full potential and thus were unable to pass on the skill and
infection to the generation after them, due to the political
upheaval in the 70’s and 80’s. I guess only Asoma Banda,
Appiah Menkah & probably a handful survived. Today where
are their institutions….Ladies and Gentlemen?
So you see, the generation C’s & D’s had to literally rebuild
the foundation that they should have inherited. That is lost
time! Trust me, it takes not less than 10years to build the
foundation of a solid business. If you would agree with me on
this position then, simply said, by not allowing generations A
& B to fulfill their full potential, we have lost for life, at least
20years of our entrepreneurship evolution. So we are doing
today what we should have done at least 10 years ago. “We
dey back”. That is one of the reasons why there’s a big gap
between the size of our businesses and that of our Nigerian
colleagues. Thankfully, however, our generations C & D
have lived through and chalked feats that have put us back
on track at least to prevent a further widening of the gap. We
appreciate them.
This gives me hope that the idea of a Ghanaian owned economy
is possible, if we create the room for our entrepreneurs to
flourish. Believe me, we can and if you think it’s not possible,
watch out for the twitter generation. They are CRAZY. So
the reality today is that, we have entrepreneurs budding
with a lot of energy but are we using them or creating room
for them to flourish? Or we are stifling their growth using
bureaucracies and political barriers.
Can you believe that in some cases the public service is in
competition with the private sector? Yes. The Public sector
that should facilitate access to resources is competing with
the private sector instead of facilitating the so called engine of
growth. Instead of complaining, I’m happy to say that in spite
of all this I still have so much faith in Ghana. AND this is for
a simple reason. We are so GREEN and the country is awash
with opportunities.
This gives me hope that the idea of a Ghanaian owned economy
is possible, if we create the room for our entrepreneurs to
flourish. Believe me, we can and if you think it’s not possible,
watch out for the twitter generation. They are CRAZY. So
the reality today is that, we have entrepreneurs budding
with a lot of energy but are we using them or creating room
for them to flourish? Or we are stifling their growth using
bureaucracies and political barriers.
The World Bank recently released an interesting report on
the trend of urbanization in Ghana. Ghana’s urban population
as at today is 14.6m and this is expected to hit almost 20m in
2025.
Now listen to the juicy part. Do you know that the size of
Accra in 1990 was 227sq km? This more than doubled to
563sq km in 2002 and as at 2012, the land mass was almost
1,200sq km. This means in a space of 20years the size of Accra
has increased by more than 5 times. This is staggering and
judging by the pace of real estate development, this figure
would surely double 10 years from today. This means one
thing. BUSINESS opportunities…. Accommodation, food,
transportation, relaxation, recreation, energy, lifestyle, and a
lot more. Ladies and gentlemen, ‘Jobs Dey!’
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As a nation how are we going to harness these opportunities
for the benefit of nationals and country? Public sector and
policy makers…stay in your lane and let’s not stifle private
sector. Rather, Public sector; invigorate us to deliver so you
get the praise for it because we cannot challenge you…you’ve
got the power. Too many of us are hungry to work. Don’t
waste this energy burning in us. I think the government
should also consider building MONSTER corporations of
Ghanaian ownership INTENTIONALLY. If we have to
own our economy then we need to forcefully create big
corporations in a short space of time. It’s been done elsewhere
so why not in Ghana. UBA was built. Ecobank was built and
so was Dangote. They were created. It can be done, so easily
and of course through PPP, backed by action.
At this point, kindly permit me to share with you my most
practical example of an effective PPP. I’m sure most of
you have been to Dubai and in so doing used the Emirates
Airline. And once you’ve been to Dubai you would know
about the BURJ KHALIFA…the tallest building in the world.
The inflight entertainment programs on emirates include a
collection of audio interviews granted by various personalities
including One Mohammed Ali Alabbar. He is the Chairman
of EMAAR Properties, the firm that built the Burj Khalifa…In
the interview Mohammed recounts the events that inspired
their decision to build that structure. He recounted that the
first concept they came up with was a fantastic project with
a lot of facilities.
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2015
Annual Report
They then sought the audience of the Sheikh of Dubai to
present the project to him. After they had finished with their
presentation, the sheikh asked him Mohammed one question.
“What’s the height of the tallest building in the world?” The
tallest building in the world at the time was about 86floors.
When the chairman responded to the question, the Sheikh
simply walked out of the room. I mean he walked out on
them. This action baffled the Chairman so he wondered
why the Sheikh would just ignore them like that. Then
upon reflections he got it. He realized that the Sheikh was
not impressed. So he and the architects had to go back to the
drawing board to rethink the project. Lo and behold they
came up with a masterpiece which outclassed the then tallest
building in the world.
They sought the attention of the Sheikh again to present their
concept to him. This time he sat glued to his seat and after the
presentation he asked only one question. “When is the crane
going on site?” Today the Burj Khalifa towers arrogantly in
the sky, boasts of 7,000 visitors a day …the rest is history. For
me, that feat is the result of a PPP relationship. Beat it if you
can.
Add
I envisage a new dawn of PPP. A partnership between an
AMBITIOUS AND COMMITTED Government on one
side and a CAPABLE PRIVATE Sector on another side. By
walking out on Mohammed, the Sheikh proved to him that he
didn’t have time for small stuff – he wanted big ideas – that’s
what I call AMBITION. By asking “when is the crane going
on site?” I see a commitment to see that the project actually
happens, I call that EXECUTION and ACTION. All this Ghana
Economic Forum, Akosombo declaration, Senchi Creed, etc
would be an academic exercise if we would keep them on the
bookshelves and not back them with action. There’s a lot of
action documents already, I believe that what we need are
EXECUTORS, DOERS, and DEVELPOMENT ARCHITECTS,
who don’t fear who or what!!
And it can only be achieved by only ONE crazy leader who
is; AMBITIOUS, AUTHORITATIVE and a DOER. Our PPP
could best be described as the case of a willing government
on one side, a civil sector that cannot be bothered on another
side and a hurriedly formed inexperienced private sector
institution on the other side. Word has it that sometimes some
of our government institutions whether intentionally or not,
just stifle the initiatives of government. What stops us from
being united in a manner for progress and nation building?
Finally I’m sure you’ve been waiting to hear why I’m a fan of
the President. Ok I’d tell you.
51
The last time I checked, my president is a nice guy by all
standards but I think we need to help him bite. In my opinion,
nice alone may not be good enough for the kind of results
Ghana needs. Thanks to the foundations laid by my forebearers. Today it is my responsibility to handover to the next
generation, a foundation fit for them to compete on the world
stage of entrepreneurs. As a citizen of the land I have no other
identity but my Ghanaian ID and I believe the same applies
to most of you. As a student of entrepreneurship, Ghana is
where I have my competitive strengths and I believe this
applies again to some of you. Also, I realize every day that
time indeed is short and waits for no man… again I believe
this applies to all of you
Above all of these, I’m committed to Ghana to the core,
regardless of who is in control and I’d give the nation my
best….As for this one, I would not know if it applies to you
or not. As we prepare to dive deep into the issues, I pray that
those who matter – just for God and country – would give a
thought to the need for execution.
I wish you a successful event.
God bless.
2015
Annual Report
ddA
We are a
One-Stop-Shop
for all Savings Products
Talent
Development
The
ddA
Centre
53
2015
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About the BEIGE Academy
1
The BEIGE Academy is a special purpose institution established for organizing training and career
development programs for employees of The BEIGE Group, clients and other members of the general
public.
ddA
The training includes all subjects either directly or indirectly relating to their functional
responsibilities.
These include the orientation on the origins of The BEIGE Group, specially for its staff and specialist/
technical skills development, general skills as well as health and wellness for all.
54
Programs We Offer
2015
Annual Report
ddA
The programs we offer are in two broad categories;
•Tutorial programs
•Life Skills Development Programs
Tutorial Programs
• Specialist Skills Development
• General Skills Development
• Management Skills Development
• Entrepreneurship Skills Development
Life Skills Development Programs
• The BEIGE Talent
• Leadership Series
• Life (Gaining a Mastery of Life)
• GROW
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2015
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The BEIGE Talent
100 BENEFIT FROM The BEIGE Talent PROGRAMME.
In seeking to recruit and retain highly skilled and talented graduates, The BEIGE Group introduced The BEIGE Talent(TBT) earlier this
year. TBT is a career skills development program, which identifies, grooms and prepares a team of young and dynamic individuals to
fill various positions within The BEIGE Group and its subsidiaries. The first set of the trainees, numbering 100, were screened out of
over 1,000 applicants. Out of the over 1,000 applicants, 200 qualified per the advertised criteria, of which 158 candidates made it
through aptitude testing and interviews and the top 100 were selected.
Prof. Stephen Adei at the induction ceremony
In a group photo with The Board Chairman of BCSL (seated right)
The Induction & Structure
The Induction of the first set for The BEIGE Talent was held in July 2015, at a ceremony
at BEIGE Academy in Accra. The event was attended by Prof. Stephen Adei former
rector of Ghana Institute of Management and Public Administration (GIMPA), as the
main speaker, with Mr. Kofi Otutu Adu-Labi (Board Chairman of BCSL), Rev. Lartey
(Director of Training at the National Youth Authority).
What next on TBT?
Speaking on what next to expect from TBT, Mr. Nyinaku said, “by the end of 2017 our
staff numbers are likely to exceed 5,000 in all our subsidiaries. We’ll be doing ourselves
a great deal of good if 30% of them are graduates from the TBT programme”. Mr.
Nyinaku continued that, “we’re encouraged by the success of the first set of trainees on
the programme and thus, encouraged to roll out the second set very soon. We intend to
recruit every 6 months; hence, rolling out early will facilitate the process”.
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The BEIGE Talent has a well-structured selection process and identifies talent from a
variety of academic backgrounds. The intention is to enable trainees to draw strength
from a highly collaborative and intellectually stimulating environment.
Testimonials
“I graduated from the University of Professional Studies with a Business Administration degree and with a post
graduate certificate in Finance. Working with an Investment Firm has always been my dream. The BEIGE Talent
Programme has offered me the opportunity to acquire requisite practical skills about the job I desired to do.
Now, I’m a proud team member with the Controls and Compliance Department at The BEIGE Group office at East
Legon.
I’m a Bachelor of Management Studies graduate from the University of Cape-Coast, The BEIGE Talent Program has
afforded me the opportunity to learn practically, the things studied at school.
I was first placed with the Business Creation Team and I’m now at the CEO’s Secretariat. The staff have been helpful
in facilitating my learning process. I’m looking forward to becoming a successful banker.
God bless The BEIGE Group for this opportunity.
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2015
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The BEIGE Talent
BEIGE Executive Trainees begin CSR
BEIGE Academy has ushered executive trainees of The BEIGE Talent (TBT) programme to undertake a communal Corporate Social
Responsibility (CSR), as part of their training. This forms part of activities to be undertaken, by the executive trainees, in the second trimester
of the programme. The initiative was announced by the Centre Manager, Abena Asantewaa Adu-Larbi, during a group assignment session of
trimester one.
Finding the right CSR
In order to have an innovative and attainable
CSR, the various teams within TBT were
tasked to investigate the core communal
issues and propose the best CSR project for
the communities where The BEIGE Group
and its subsidiaries operate. The teams
deployed field surveys with one-on-one
interviews to put together their various
presentations.
Twelve (12) teams presented CSR proposals
for consideration by the Academic Council.
Of the 12, three (3) were selected based on
content, delivery, feasibility and impact on
the identified stakeholders. In doing so, the
executive trainees got the opportunity to
sharpen their corporate presentation and
research skills.
The Winning Proposal
After the 3-day presentation, members of the
Academic Council expressed optimism about
achieving the intended objective with the
trainees’ attitude to public service. The
centre manager expressed satisfaction at most
of the proposals by the trainees. She
commented, “Service to society is at the heart
of the entire CSR exercise; so we’re not just
looking at the checklist but the approach in
putting those proposals together”. She added,
“This is the first CSR to be undertaken by
TBT and would be emulated by upcoming
TBT Programmes, hence it must set an
enviable benchmark”.
A gift for Public Service
The common idea amongst the 3 proposals
selected were the facilitation of a sustainable
mentorship programme; for the pupils of LA
Nkwantanang Cluster of Schools (Madina),
New Abirem L/A Primary School (New
Abirem) and Sokoban M/A (Kumasi).
Trainees will engage in a continuous process
of grooming the pupils into responsible
TBT ‘LEADERS’ during their winning presentation
adults, with the attitude to positively drive
themselves to their maximum potentials and
inculcating in them the spirit of self-belief.
The Team Leads of the 12 TBT groups
emphasized the importance of implementing
this idea since it had the potential to
positively affect the beneficiaries and to a
greater extent, the quality of human resource
in the country.
Other proposed projects by the trainees
TBT ‘DO THINGS’ in a group discussion before
the presentation
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Accra and TBT ‘BEST’ for New Abirem. The
team lead for TBT ‘LEADERS’ remarked that,
“we deem it expedient to choose La
Nkwantanang for our CSR project because
the good people of Madina and its environs
have contributed immensely to the growth
of BEIGE Capital, hence, giving back to them
a sustainable legacy is befitting.”
La Nkwantanang Cluster of Schools is a
government basic school located within the
locality where BEIGE Capital, a subsidiary of
The BEIGE Group, was birthed.
Funding the CSR
The winning CSR Proposal will be funded by
The BEIGE Foundation, which is funded by
the profits of The BEIGE Group’s subsidiaries
and other benevolent individuals and
institutions. There is also an opportunity for
Philanthropists,
Parent
&
Teacher
Associations of the schools and other
organizations to support trainees in putting
smiles on the faces of the pupils.
included renovation of classroom blocks,
construction of state-of-the-art toilet
facilities, a well-stocked library, and a
fully-furnished ICT Centre.
Anthony Manye of TBT ‘LEADERS’,
interacting with a student from LA Nkwantanang
The Winning Team
The best amongst the three selected teams
would be made ambassadors to spearhead the
implementation of the selected project(s). In
addition, the team will receive a
BEIGE-branded trophy and a cash reward.
The teams that presented the best CSR
project, satisfying all the criteria for
selection, were TBT ‘LEADERS’ for Greater
TBT ‘BEST’, based in New Abirem, placed second
Through BEIGE Academy, The BEIGE Group
seeks to achieve its goal of fielding a
workforce of about 5,000 youth by 2017.
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2015
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2015 Financial Statements
ddA
We continuously and consciously
measure every aspect of our
performance and leave no stone unturned.
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2015
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BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
REPORT OF THE BOARD OF DIRECTORS
TO THE MEMBERS OF BEIGE CAPITAL SAVINGS AND LOANS LIMITED
The Board of Directors present their report and the audited financial statements of the
company for the year ended December 31, 2015.
Directors’ Responsibilities in Relation to the Financial Statements.
The Companies Act, 1963 (Act 179) requires the Directors to prepare financial statements for
each financial year which give a true and fair view of the state of affairs of the company as at
the end of each year and of the profit or loss for the year.
In preparing those financial statements, the Directors are required to:

Select suitable accounting policies in accordance with International Financial Reporting
Standards (IFRS) and to apply them consistently:
Add

Make judgments and estimates that are reasonable and prudent

State whether applicable accounting standards have been followed, subject to any
material departures, disclosed and explained, in the financial statements.

Prepare the financial statements on the going concern basis unless it is inappropriate to
presume that the company will continue in business.
The Directors are responsible for the preparation of the financial statements in accordance with
International Financial Reporting Standards, and the Companies Act, 1963 (Act 179) and
ensuring that the company keeps proper accounting records which disclose with reasonable
accuracy the financial position of the company and which enable them to ensure that the
financial statements comply with relevant International Financial Reporting Standards (IFRS),
the Companies Act, 1963 (Act 179) and the Banking Act, 2004 (Act 673) as amended. They are
also responsible for safeguarding the assets of the company and hence taking reasonable steps
for the prevention and detection of fraud and other irregularities, as well as designing,
implementing and maintaining internal controls relevant to the preparation and fair
presentation of financial statements that are free of material misstatement.
The above statement, which should be read in conjunction with the report of the auditors, is
made with the view to distinguishing for shareholders the respective responsibilities of the
Directors and the auditors in relation to the financial statements.
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2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
REPORT OF THE BOARD OF DIRECTORS
TO THE MEMBERS OF BEIGE CAPITAL SAVINGS AND LOANS LIMITED (Continued)
Nature of Business
There has been no change in the business of the company. Beige is a private company under the
provisions of the Companies Act 1963, (Act 179) and licenced by Bank of Ghana.
Results of Operations
The results of the operations for the year ended December 31, 2015 are set out in the Statement
of Profit or Loss and other Comprehensive Income, Statement of Financial Position, Statement
of Changes in Equity, Statement of Cash Flows and the Notes to the financial statements from
page 11 to 41. A summary of the results is as follows:
2015
GHS
2014
GHS
Profit before Tax
10,804,133
4,883,021
Taxation
National fiscal
stabilization levy
(4,301,119)
(607,266)
(540,207)
(265,343)
5,962,807
4,010,412
Profit/(Loss) after tax
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The Board of Directors considers the state of the Company‟s affairs to be satisfactory.
Stated Capital
The company has complied with the minimum stated capital requirement for savings and loans
companies as directed by the Bank of Ghana.
Dividends
Dividend of GHS 500,000 was declared by the Board of Directors and paid during the year.
Auditors
In accordance with Section 134 (5) of the Companies Act, 1963 (Act. 179) Messrs Morrison &
Associates will continue in office as the Auditors of the company.
..................................................)
Kofi Otutu
) Adu Labi
Board Chairman
)
DIRECTORS
Michael K. Nyinaku
Managing Director
..................................................)
ACCRA
……………………........2016
60
3
2015
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDEDAnnual
DECEMBER
31, 2015
Report
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
BEIGE CAPITAL SAVINGS AND LOANS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of Beige Capital Savings and Loans
Limited which comprise the statement of financial position as at December 31, 2015, the
statement of profit or loss and other comprehensive income, the statement of changes in
equity, the statement of cash flows for the period then ended and a summary of significant
accounting policies and other explanatory notes.
Directors’ responsibility for the financial statements
Directors are responsible for the preparation and fair presentation of these financial statements
in accordance with International Financial Reporting Standards (IFRS), the Companies Act, 1963
(Act 179) and the Banking Act, 2004 (Act 673) as amended.
This responsibility includes: designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of financial statements that are free of material
misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.
Add
Auditors’ responsibility
Our responsibility is to express an independent opinion on these financial statements based
on our audit.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance whether the financial statements are free of material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor‟s
judgement, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal controls relevant to the entity‟s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances.
61
4
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the
overall presentation of the financial statements.
We believe that, the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Opinion
In our opinion, the financial statements present fairly in all material respects the financial
position of Beige Capital Savings and Loans Limited as at December 31, 2015, and of its financial
performance and its cash flows for the year then ended in accordance with IFRS, the Companies
Act, 1963 (Act 179) and the Banking Act, 2004 (Act 673) as amended.
Report on other legal and regulatory requirements
The Companies Act, 1963 (Act 179), and section 78 (2) of the Banking Act, 2004 (Act 673)
requires that in carrying out our audit we consider and report on the following matters. We
confirm that:
i)
ii)
iii)
iv)
v)
vi)
ddA
We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit;
Proper books of account have been kept by the company, so far as appears from our
examination of those books;
The statement of financial position, statement of profit and loss and other
comprehensive income and the statement of changes in equity are in agreement with
the books of account;
We have obtained satisfactory returns from the Company‟s branches not visited;
The company‟s transactions were within its powers;
The company has generally complied with the provisions of the Banking Act, 2004
(Act 673) as amended.
.........................…………………………………………………
CHARTERED ACCOUNTANTS (ICAG/F/2016/097)
ACCRA, GHANA
…………………............2016
PARTICULARS OF PARTNER SIGNING:
NAME: SAMUEL WILFRED YAW INKOOM
PRACTISING CERTIFICATE NUMBER: ICAG/P/1118
62
2015
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED
DECEMBER 31, 2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS COMPANY LIMITED
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2015
NOTE
2015
GHS
2014
GHS
Interest Income
4
171,716,005
118,133,515
Interest Expense
5
(129,072,504)
(83,894,728)
42,643,501
34,238,787
6
3,253,524
2,890,664
7
2,691,068
4,643,073
48,588,093
41,772,524
(34,257,472)
(34,050,050)
14,330,620
7,722,474
(3,526,488)
(2,839,453)
10,804,133
4,883,021
NET INTEREST INCOME
Commissions and Fees
Add
Service and other Income
TOTAL INCOME
Operating and Administrative Expenses
8
Operating profit Before impairment Loss
Impairment Loss
9
Profit Before Tax
Taxation
10
(4,301,119)
(607,266)
National Fiscal Stabilisation Levy
10c
(540,207)
(265,343)
Profit after Tax
Other Comprehensive Income
Total Comprehensive Income
63
5,962,807
5,962,807
4,010,412
4,010,412
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS
COMPANY
LIMITED POSITION AS AT
STATEMENT
OF FINANCIAL
31, 2015
STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31,DECEMBER
2015
NOTES
ASSETS
2015
GHS
2014
GHS
Cash and cash equivalents
11
41,808,100
27,207,378
Investments
Loans and Advances to Customers
Prepayments and Other Receivables
12
13
14
236,226,849
415,770,723
57,519,039
105,524,502
312,542,985
69,199,248
Property, Plant & Equipment
15
64,036,694
25,331,740
Intangible Asset
16
2,725,221
526,470
Current tax
10a
TOTAL ASSETS
-
103,805
818,086,627
540,436,128
LIABILITIES
Deposits and Borrowings
Accounts Payables & Accruals
Current Tax
17
18
10a
666,596,177
10,530,921
1,304,704
436,338,169
1,919,722
-
Deferred Tax
National fiscal stabilisation levy
10b
10c
1,873,332
455,550
249,758
65,343
680,760,684
438,572,992
120,000,000
2,693,900
8,129,394
6,502,649
90,000,000
3,352,761
4,989,129
3,521,246
TOTAL SHAREHOLDERS' FUNDS
137,325,943
101,863,136
TOTAL LIABILITIES AND
SHAREHOLDERS' FUNDS
818,086,627
540,436,128
TOTAL LIABILITIES
SHAREHOLDERS' FUNDS
Stated Capital
Income Surplus Account
Regulatory Credit Risk Reserve
Statutory reserve
19
BY ORDER OF THE BOARD
………………………………..
Kofi Otutu Adu Labi
Board Chairman
Michael K. Nyinaku
Managing Director
……………………………….
)
)
) DIRECTORS
)
)
64
ACCRA
………………………………………………………….2016
7
65
Balance at 31st December
Total Comprehensive Income
Transfer to Regulatory Credit Risk
Transfer to Statutory Reserves
Other movements:
Proceeds from Issue of Shares
Dividends Paid
Transactions with owners:
Balance at 1st January
(3,140,265)
(2,981,403)
2,693,900
5,962,807
(500,000)
3,352,761
INCOME
SURPLUS
GHS
-
30,000,000
-
120,000,000
90,000,000
STATED
CAPITAL
GHS
FOR THE YEAR ENDED DECEMBER 31, 2015
STATEMENT OF CHANGES IN EQUITY
6,502,649
2,981,403
-
-
3,521,246
GHS
STATUTORY
RESERVE
Add
8,129,394
3,140,265
-
-
-
4,989,129
REGULATORY CREDIT
RISK RESERVE
137,325,943
-
5,962,807
30,000,000
(500,000)
101,863,136
GHS
TOTAL
Annual Report
2015
66
Balance at 31st December
Other movements :
Total Comprehensive Income
Regulatory Credit Risk Reserve
Transfer to Statutory Reserves
Transaction with owners:
Proceeds from Issue of Shares
90,000,000
-
-
3,521,246
3,352,761 1,262,725
4,010,412
(1,139,140) (1,262,725)
50,000,000
-
1,139,140
4,989,129
101,863,136
4,010,412
-
50,000,000
1,000,000
46,690,162
675,803
46,014,359
1,000,000 -
3,849,989
3,849,989
-
Reversal of income tax paid expensed in previous a/c
2,258,521
-
2,258,521
162,563
581,652
(3,174,186)
3,755,838
162,563 40,000,000
-
40,000,000
overstatement of depreciation charge in previous a/c
Other adjustments
Balance restated
Adjustments due to transition to IFRS
Balance at 1st January
FOR THE YEAR ENDED DECEMBER 31, 2014
Add
Annual Report
2015
2015
Annual Report
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2015
OPERATING ACTIVITIES
2015
2014 GHS
10,804,133
PROFIT BEFORE TAX
Adjustments:
overstatement of depreciation charge in previous a/c
Reversal of income tax paid expensed in previous a/c
Other non cash movements
NET CASH INFLOW BEFORE CHANGES IN
OPERATING ASSETS AND LIABILITIES
4,662,875 3,526,488 18,993,496 9,895,668
(79,544,006)
Increase in Loans & Advances to Customers
(106,954,027) (104,458,982)
230,258,008 11,680,209 189,172,163
(47,371,164)
8,611,200 199,801 (1,269,036) (150,000) (901,035)
(345,822)
(1,385,884)
(200,000)
11,673,808 (45,034,730)
Increase/(Decrease) in Accounts Payables & Accruals
Increase/(Decrease) in Deferred Fees
Corporate Tax Paid
National Stabilisation levy Paid
30,667,304 NET CASH FLOW FROM OPERATING ACTIVITES
INVESTING ACTIVITIES
Purchase of Fixed & Intangible Assets
Proceeds from Issue of Shares
Dividends Paid
(10,562,961)
30,000,000 (500,000) 50,000,000
29,500,000 50,000,000
-
NET INCREASE IN CASH & CASH EQUIVALENTS
14,600,722
Cash and Cash Equivalents at January 1
27,207,378 CASH AND CASH EQUIVALENTS AT DECEMBER 31
41,808,100 (10,562,961)
-
(45,566,582) NET CASH FLOW FROM INVESTING ACTIVITIES
FINANCING ACTIVITIES
(47,863,238)
(35,139,062)
2,296,657 Disposal of assets
1,000,000
1,317,190
4,195,899
2,839,453
(4,502,458)
(130,702,347)
Add
67
162,563
Increase in Investment
Increase in Customer Deposits and Borrowings
(Increase)/Decrease in Prepayments and Other Receivables
4,883,021
-
Depreciation and Amortisation
Provision for Impairment
Loans and Advances Written Off
GHS
4,297,977
22,909,401
27,207,378
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
NOTES TO THE FINANCIAL STATEMENTS
1. REPORTING ENTITY
Beige Capital Savings and Loans Limited is a private limited liability company
incorporated in Ghana under the Companies Act, 1963, (Act 179) and regulated under
the Banking Act, 2004 (Act 673) as amended by the Banking (Amendment) Act, 2007
(Act 738) . The company is domiciled in Ghana with its registered office at 1st Floor
Aseda House, Adenta.
The Company is licensed to operate as a savings and loans company.
1.1 AUTHORISATION FOR PUBLICATION
The financial statements of the Company for the year ended December 31, 2015 were
authorised for issue by a resolution of the Board of Directors on………..
Add
2. EFFECT OF TRANSITION TO IFRS
The company‟s date of transition from Ghana National Accounting Standards (GNAS)
to International Financial Reporting Standards (IFRS) is 1 January 2014, with its first
IFRS financial statements prepared to 31 December 2015.
The transition from GNAS to IFRS resulted in changes in the equity at the date of
transition and the end of the comparative period as well as reported results of the
comparative period.
In accordance with IFRS 1, “First time adoption of International Financial Reporting
Standards”, the changes are detailed in the reconciliation statements below.
A. Reconciliation of Profit
Profit before tax under GNAS
Deferred portion of 2014 fees in 2013 reversed
Deferred portion of fees (beyond 2014)
Impairment allowance
Profit before tax under IFRS
31 Dec. 2014
GHS
3,398,059
1,556,335
(1,210,513)
1,139,140
4,883,021
68
11
2015
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
NOTES (Continued)
B.
Reconciliation of Equity
1 Jan. 2014
GHS
31 Dec. 2014
GHS
Total equity under GNAS
Deferred portion of fees
Deferred portion of 2014 fees in
2013 reversed
Regulatory Credit Risk Reserve
Other adjustments
46,014,359
(3,174,186)
-
98,539,810
(4,384,699)
1,556,334
3,849,989
-
4,989,129
1162,563
Total equity under IFRS
46,690,162
101,863,137
2.1 Notes to the reconciliations
i) Loans and receivables are measured at amortised cost. Under GNAS, loans and
receivables were measured at book value. The change has resulted in a decrease in
equity at the date of transition, an increase in profit and in effect equity for the
comparative period and a reduction in the balance for loans and advances for the
comparative period.
ii) Provision for impairment for loans and receivables is made using IFRS principles.
Under GNAS, provision for impairment was made using the Bank of Ghana‟s loan
provisioning criteria. The change has resulted in a decrease in impairment and in
effect an increase in profit before tax and in Shareholders‟ funds at the date of
transition and the end of the comparative period.
iii) Overall, the change in the accounting framework of the company from GNAS to
IFRS has resulted in an increase in equity both at the date of transition and for the
comparative period and also an increase in profit before tax for the comparative
period.
Add
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied in the preparation of these financial statements are set
out below. These policies have been applied to the period presented in these financial
statements by the Company.
a. Basis of preparation
The financial statements have been prepared in accordance with the relevant
International Financial Reporting Standards (IFRS) issued by International Accounting
Standards Board and in the manner required by the Companies Act, 1963 (Act 179).
69
b. Accounting convention
The financial statements have been prepared under the Historical Cost Convention and
by the use of fair value measurement bases for assets and liabilities required to be so
measured by relevant IFRSs‟.
12
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
NOTES (Continued)
c. Functional and presentation currency
The financial statements are presented in Ghana Cedis (GHS) which is the company‟s
functional and presentation currency.
d. Foreign Currency Transactions
Foreign currency transactions are recorded, on initial recognition by translating into
Ghana Cedi at the rates of exchange applicable at the date of the transactions.
At the end of the reporting period;
 Foreign currency items are reported using the closing rate; the closing rate is the
ruling exchange rate at the end of the financial year.
 Non-monetary items, which are carried in terms of historical cost denominated
in foreign currency are reported using the exchange rate at the date of the
transaction, and
 Non-monetary items which are carried at fair value denominated in foreign
currency are reported using the exchange rates that existed when the values were
determined.
Add
Exchange differences arising on the settlement of monetary items or on reporting the
entities monetary items at rates different from those at which they were initially
recorded during the period, or reported in previous financial statements, are recognised
as income or expenses in the period in which they arise.
Cedi equivalents were paid for all foreign currency transactions. There were no
monetary assets and/or liabilities denominated in foreign currencies as at the end of
the year.
e. Property, plant and equipment
The Company recognizes an item of property, plant and equipment as an asset when it
is probable that future economic benefits will flow to it, the amount meets the
materiality threshold set by the Company and can be reliably measured.
Property, plant and equipment are initially measured at cost.
Cost includes costs incurred initially to acquire or construct an item of property, plant
and equipment and costs incurred subsequently to add to or replace part of it. If a
replacement cost is recognised in the carrying amount of an item of property, plant and
equipment, the carrying amount of the replaced part is derecognised.
Property, Plant and Equipment are depreciated on the straight line basis over their
expected useful lives to their estimated residual value.
70
Property, Plant and Equipment are carried at cost or valuation less accumulated
depreciation and any impairment losses.
13
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
NOTES (Continued)
The depreciable amount related to each asset is determined as the difference between
the cost and the residual value of the asset. The residual value is the estimated amount,
net of disposal costs, which the Company would currently obtain from the disposal of
an asset in similar age and condition as expected at the end of the useful life of the asset.
The current annual depreciation rates for each class of property, plant and
equipment are as follows:
Land and Buildings
Plant and Machinery
Furniture and Fittings
Office Equipment
Leasehold Improvement
Motor Vehicle
Computers and accessories
Software
0.00 %
20.00%
20.00%
33.33%
10.00%
33.33%
33.33%
33.33%
Add
Costs associated with routine servicing and maintenance of assets is expensed as
incurred. Subsequent expenditure is only capitalized if it is probable that future
economic benefits associated with the item will flow to the Company.
The carrying values of property, plant and equipment are reviewed for indications of
impairment when events or changes in circumstances indicate the carrying value may
not be recoverable.
If any such indication exists and where the carrying values exceed the estimated
recoverable amount, the assets or cash-generating units will be written down to their
recoverable amount.
The recoverable amount of property, plant and equipment is the greater of net selling
price and value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
An item of property, plant and equipment is de-recognised upon disposal or when no
future economic benefits are expected to arise from the continued use of the asset. Any
gain or loss arising on de-recognition of the asset (calculated as the difference between
the net disposal proceeds and the carrying amount of the item) is included in the income
statement in the year the item is de-recognised.
Residual values, useful lives and methods of depreciation for property, plant and
equipment are reviewed and adjusted if appropriate, at each financial year end.
71
14
2015
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
Annual Report
NOTES (Continued)
f. Employee Benefits
Short-Term Benefits
Short-term employee benefits are amounts payable to employees that fall due
wholly within twelve months after the end of the period in which the employee renders
the related service.
The cost of short-term employee benefits is recognised as an expense in the period when
the economic benefit is given, as an employment cost. Unpaid short-term employee
benefits as at the end of the accounting period are recognised as an accrued expense and
any short-term benefit paid in advance is recognised as a prepayment.
Wages and salaries payable to employees are recognised as an expense in the income
statement at gross amount. The Company‟s contribution to Social Security & National
Insurance Trust and the Provident fund are also charged as expenses.
Social Security and National Insurance Trust (SSNIT)
Add
Under a compulsory National Defined Contribution Pension Scheme, the Company
contributes 13% of employees‟ basic salary to SSNIT for employee pensions. The
Company‟s obligation is limited to the relevant contributions, which are settled on due
dates. The pension liabilities and obligations, however, rest with SSNIT.
Provident Fund
Under an optional National Defined Contribution Pension Scheme, the Company
contributes 5% of employees‟ basic salary to its elected fund manager (currently
Enterprise pensions) for employee pensions. The Company‟s obligation is limited to the
relevant contributions, which are settled on due dates. The pension liabilities and
obligations, however, rest with Enterprise pensions.
g. Taxation
Taxation in the statement of profit or loss and other comprehensive income comprises
current tax and deferred tax. Current tax is the tax expected to be payable, under the
Internal Revenue Act 2000 (Act 592), on the taxable profit for the year.
72
Deferred income tax is provided on all temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts. Deferred tax
liabilities are generally recognised for all taxable temporary differences that are expected
to reverse in the foreseeable future while deferred tax assets are recognised to the extent
that it is probable future taxable profit will be available against which deductible
temporary differences can be utilised.
Deferred tax is calculated using the rate expected to be applicable in the period during
which the asset will be realised or the liabilities settled.
15
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
NOTES (Continued)
h. National Fiscal Stabilization Levy
Under the Ghana National Fiscal Stabilization Levy Act, 2013, financial institutions and
some large firms were required to pay a levy of 5% of their profit before tax towards
fiscal stabilization which took effect from July 2013. Beige has complied with this
statutory obligation as at the reporting period.
i.
Financial Instruments
Initial recognition and measurement
The company recognises a financial asset or a financial liability when, and only when, it
becomes a party to the contractual provisions of the instrument.
The company classifies financial instruments, or their component parts, on initial
recognition as a financial asset, a financial liability or an equity instrument in accordance
with the substance of the instrument. These are initially measured at fair value
(including transaction costs for assets and liabilities not measured at fair value through
profit or loss).
ddA
Subsequent measurement of financial instruments
For purposes of subsequent measurement financial assets are classified as follows:




Financial assets at fair value through profit or loss
Loans and receivables
Held-to-maturity investments
Available-for sale financial assets
(a) Financial assets at fair value through profit or loss
A financial asset at fair value through profit or loss is a financial asset that
is designated on initial recognition at fair value through profit or loss or
assets that are held for trading. Assets are held for trading if they are
acquired for the purpose of selling in the short term or for which there is
a recent pattern of short term profit taking.
Assets in this category are measured at fair value with changes recognised in
profit or loss.
73
16
2015
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
Annual Report
NOTES (Continued)
(b) Loans and receivables
These are financial assets with fixed or determinable payments that are not quoted
on an active market other than those in the three other categories.
Assets in this category are measured at amortised cost using the effective interest
rate method.
(c)
Held-to-maturity investments
These are financial assets with fixed or determinable payments that an entity
intends and is able to hold to maturity and that do not meet the definition of those
in the other categories.
They are measured at amortised cost through the effective interest rate method.
Add
(d) Available-for-sale financial assets
These are financial assets designated on initial recognition as available-for-sale or
any other instruments that are not classified under any of the other categories.
They are measured at fair value with changes recognised in equity.
Financial liabilities
For the purposes of subsequent measurement financial liabilities are classified as
follows:


Financial liabilities at fair value through profit or loss
Financial liabilities at amortised cost using the effective interest rate method.
a) Financial liabilities at fair value through profit or loss
A financial liability at fair value through profit or loss is a financial liability that
is designated on initial recognition at fair value through profit or loss or
liabilities that are held for trading.
Liabilities in this category are measured at fair value with changes recognised in
profit or loss.
b) Financial liabilities at amortised cost
74
These are non-trading financial liabilities and are measured at amortised cost
using the effective interest method.
17
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
NOTES (Continued)
The company‟s principal financial assets are loans and advances to customers, cash and
bank balances, money market investments and other short term investments.
Loans and advances and money market investments have been classified as loans and
receivables and held – to – maturity investments respectively and are both measured at
amortised cost. Cash and bank balances and other short term investments have been
classified as financial assets at fair value through profit or loss.
The company‟s principal financial liabilities are short term investments from customers,
deposits from customers and borrowings from other financial institutions.
The company‟s financial liabilities have been classified as financial liabilities at fair value
through profit or loss.
The amortised cost of a financial asset or a financial liability.
The amortised cost of a financial asset or financial liability is the amount at which the
financial asset or financial liability is measured at initial recognition minus principal
repayments, plus or minus the cumulative amortisation using the effective interest
method of any difference between that initial amount and the maturity amount, and
minus any reduction (directly or through the use of an allowance account) for
impairment.
Add
Fair Value Measurement
The company defines fair value as the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the
measurement date. Fair value measurement assumes an orderly transaction between
market participants at the measurement date under current market conditions.
In measuring fair value:
 The company takes into account the characteristics of the asset or liability being
measured that a market participant would take into account when pricing the
asset or liability at the measurement date.
 The company determines classes of asset or liability for disclosure purposes on
the basis of the nature, characteristics and risks of the asset or liability and the
level of the fair value hierarchy within which the fair value measurement is
categorized.
75
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
NOTES (Continued)
De-recognition of financial assets and liabilities
A financial asset or a portion thereof, is derecognized when the Company‟s rights to
cash flows have expired or when the Company has transferred its rights to cash flows
relating to the financial assets, including the transfer of substantially all the risk and
rewards associated with the financial assets or when control over the financial assets has
passed.
A financial liability is derecognised when the obligation is discharged, cancelled or has
expired.
Impairment of financial assets
Framework for measuring impairment of financial assets
At each reporting date the Company assesses whether, as a result of one or more events
occurring after initial recognition, there is objective evidence that a financial asset or
group of financial assets has become impaired.
Add
Evidence of impairment may include significant difficulty of the issuer or obligor, the
disappearance of an active market for that financial asset because of financial difficulties,
etc.
In the case of equity investments, objective evidence would include significant or
prolonged decline in the fair value of the investment below its cost.
For debt instruments and financial assets measured at amortised cost, if there is
objective evidence that an impairment loss has been incurred, the amount of the loss is
measured as the difference between the asset‟s carrying amount and the present value of
the estimated future cash flows (excluding future expected credit losses that have not yet
been incurred). The carrying amount of the asset is reduced through the use of an
allowance account and the amount of the loss is recognised in the income statement.
If, in a subsequent year, the amount of the estimated impairment loss increases or
decreases because of an event occurring after the impairment was recognised, the
previously recognised impairment loss is increased or reduced by adjusting the
allowance account.
Assets together with the associated allowances are written off when there is no realistic
prospect of future recovery and all collateral have been utilised.
76
If a future write-off is later recovered the recovery is credited to „credit loss expense‟.
The present value of the estimated future cash flows is determined using the financial
asset‟s original effective interest rate.
19
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
NOTES (Continued)
j.
Regulatory Credit Risk Reserve
Provision for loans and advances has been made based on IFRS principles. However,
provisions made should meet Bank of Ghana‟s criteria for loan provisioning. For the
year under review and the comparative period, provision for impairment based on Bank
of Ghana‟s criteria was higher than that based on IFRS principles. To make up for the
excess of Bank of Ghana‟s provision requirements over that based on IFRS principles, a
transfer is made from the income surplus to a non – distributable reserve in the
Statement of Changes in Equity being the Regulatory Credit Risk Reserve.
The non – distributable reserve ensures that Bank of Ghana‟s established minimum
regulatory provisioning for loans and advances is maintained.
k. Events after the reporting period
Events subsequent to the Statement of Financial Position date are reflected in the
Statement of Financial Position only to the extent that they relate to the period under
consideration and the effect is material.
Add
l.
Cash and cash equivalents
Cash and cash equivalents are in respect of bank balances, cash in vault and on hand.
m. Provisions
The company recognises provisions when it has a present obligation (legal or
constructive) as a result of past events and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Where the company expects some or all of a provision to be reimbursed, the
reimbursement is recognised as a separate asset but only when the reimbursement is
virtually certain. The expense relating to any provision is presented in the income
statement net of any reimbursement.
If the effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specific to the
liability. Where discounting is used, the increase in the provision due to the passage of
time is recognised as a borrowing cost.
77
20
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
NOTES (Continued)
n. Use of estimates and judgments
The preparation of financial statements in conformity with International Financial
Reporting Standards requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of
revenue and expenditure during the period then ended. Actual results may differ from
those estimates.
Estimates and underlying assumptions are recognized in the period in which estimates
are revised if the revision affects only that period or in the period of the revision and
the future periods if the revision affects both the current and future periods.
o. Revenue Recognition
Revenue is recognised to the extent that the economic benefit will flow to the company
and can be reliably measured. The following specific income recognition criteria have
been applied in the financial statements.
ddA

Interest Income is recognised in profit for all interest – bearing financial assets
measured at amortised cost, as interest accrues using the effective interest method
and at fair value. The company‟s financial assets that give rise to interest income
include loans and advances to customers, money market investments and short term
investments.

Commissions and fees
Revenue fees that are an integral part of the company‟s financial assets and are
included in the measurement of the effective interest rate are spread over the period
of the financial assets.
Commission and fees from the rendering of services are recognised in the income
statement when the related services are performed.
The company earns commissions and fees from a range of services provided to its
customers. Commissions and fees revenue are accounted for as follows:
Income earned on the execution of fund transfers is recognised when the transfer
is completed.
Income earned from the provision of services (such as sale of cheque and pass
books, commission on returned and managers‟ cheques) is recognised when the
services are provided.
78
21
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS LIMITED -FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2015
NOTES (Continued)
p. Interest Expense
Interest expense is recognised in profit or loss for all interest –bearing financial liabilities
measured at fair value or amortised cost using the effective interest rate method. The
company‟s financial liabilities that give rise to interest expense are short term investment
from customers and loans from other institutions.
The effective interest method is a method of calculating the amortised cost of a financial
liability and of allocating the interest expense.
The effective interest rate is calculated on initial recognition of the financial liability by
estimating the future cash flows by taking into account all the contractual cash flows
(such as commitment and processing fees) that are an integral part of the cost of the
financial liability.
q. Accruals and Payables
Liabilities are recognized for amounts to be paid in the future, and amounts accrued
but payments not yet made .For the year under review, accruals include but are not
limited to P.A.Y.E, salaries and pension payments.
Add
79
22
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS COMPANY LIMITED
NOTES (CONTINUED)
4 INTEREST INCOME
Interest on Loans
Interest on Investments
2015
GHS
2014
GHS
138,158,123
103,022,924
33,557,882
15,110,591
171,716,005
118,133,515
119,013,587
80,300,128
10,058,918
3,594,600
129,072,504
83,894,728
5 INTEREST EXPENSE
Interest on Customer Deposits
Interest on Bank Borrowings
6 COMMISSIONS AND FEES
Processing Fees
Sundry Fees
Commission on Transfers and Cheques
2,559,154
49,317
645,054
3,253,524
ddA
2,402,841
76,280
411,543
2,890,664
7 SERVICE & OTHER INCOME
Bad Debts Recovered
-
250
Interest Penalty
-
1,147,410
Sundry Income
Realised Gain on Forex
464,391
1,276,803
2,226,676
2,218,610
2,691,068
4,643,073
23
80
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS COMPANY LIMITED
NOTES (CONTINUED)
8 OPERATING AND ADMINISTRATIVE EXPENSES
2015
GHS
2014
GHS
Direct Operating Costs
2,699,852
3,296,966
Staff Costs
5,638,343
6,285,059
82,250
55,000
184,000
243,500
20,990,152
19,409,047
4,662,875
4,760,478
34,257,472
34,050,050
Auditors' Remuneration
Directors' Emoluments
General & Administrative Expenses
Depreciation and Amortisation
9 IMPAIRMENT LOSS
Provision b/f
1,286,569
Increase in Provision
3,526,488
4,813,057
Less: Loans Written off
-
Provision c/f
ddA
2,949,574
2,839,453
5,789,027
(4,502,458)
1,286,569
4,813,057
10 TAXATION
Year of Assessment
INCOME TAX
Balance at
1st January
Payment made
during the year
Charge for
the year
Balance at
31st Dec.
GHS
GHS
GHS
GHS
(a) Current Tax
2013
2014
2015
(103,805)
(103,805)
(519,036)
-
519,036
-
831,048
727,243
(750,000)
1,327,461
577,461
(1,269,036)
2,677,545
1,304,704
1,623,574
1,873,332
(b) Deferred Tax
249,758
-
81
24
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS COMPANY LIMITED
NOTES (CONTINUED)
(c.) National fiscal stabilisation levy
2014
2015
65,343.00
-
(150,000)
540,207
65,343
390,207
65,343.00
(150,000)
540,207
455,550
d. Reconciliation of Tax expense to product of Accounting Profit and Applicable Rate
2015
GHS
Profit Before Taxation
Tax at Applicable Rate (25%)
2014
GHS
10,804,133
3,398,059
2,701,033
849,515
2,047,341
2,184,768
Add ( Deduct):
Tax Effect of Non-Deductible Expenses
Tax Effect of Capital Allowances
Tax Effect of Origination and Reversal of Temporary
Differences
Tax Effect of Loan Write-offs
Tax Effect of Loan Written off in 2014, Disallowed
now allowed
(Deduct)over provision/add under provision
Tax Expense
Effective Tax Rate
(2,709,676)
1,623,574
-
ddA
(1,012,516)
52,054
(1,125,572)
(711,237)
-
1,350,084
(340,983)
4,301,119
607,266
39.81
17.9
The amount provided for Income Tax is subject to agreement with the Ghana Revenue Authority
11 CASH AND CASH EQUIVALENTS
Cash in Hand
Balances with Banks
6,941,208
5,749,025
34,866,892
21,458,353
41,808,100
27,207,378
25
82
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS COMPANY LIMITED
NOTES (CONTINUED)
12 INVESTMENTS
Money Market
2015
GHS
2014
GHS
231,226,228
88,861,511
5,000,621
16,662,991
236,226,849
105,524,502
a. Loan principal
385,417,977
301,761,963
Loan Interest
38,193,969
14,895,956
Less: Impairment Loss
(4,813,056)
(1,286,569)
(3,028,166)
(2,828,365)
Other Investments
13 LOANS & ADVANCES TO CUSTOMERS
Deferred Fees
415,770,723
b ANALYSIS BY TYPE OF CUSTOMER
Individuals
46,770,202
ddA
312,542,985
28,830,996
Private Enterprises
151,596,228
162,575,355
Others
Loan Interest
187,051,546
38,193,969
110,355,612
14,895,956
Less: Impairment Loss
Deferred Fees
(4,813,056)
(1,286,569)
(3,028,166)
(2,828,365)
415,770,723
312,542,985
c OTHER STATISTICS
i. Loan Loss Provision Ratio
1.14%
0.41%
ii. Gross Non - Performing Loan Ratio
3.84%
5.98%
17.63%
23.07%
iii. 50 Largest Exposure (Gross Funded Loans
to Total Exposure)
26
83
84
GHS
GHS
Furniture & Fittings
Office Equipment
Motor Vehicles
Computers & Data Equipment
Leasehold Improvement
Land
Plant & Machinery
2015
GHS
GHS
446,949.70
650,000.00
2,296,658
579,976
185,692
2,258,686
5,271,755
45,432,378
3,103,090
1,111,239
19,047,196
25,331,741
4,430,766
1,075,281
719,841
439,189
1,925,418
Depreciation
GHS
271,037
Opening Bal. Additions
Disposal
GHS
GHS
GHS
1,221,709
36,869,000
1,199,709
848,507
267,271
-
64,036,695
2,607,785
130,140
1,819,497
5,271,754
16,471,778
Closing Bal.
GHS
36,891,000
844,740
8,058,186
33,389,926
64,036,694
12,488,951
3,720,324
22,767,519
76,525,645
546,610
2,291,620
1,499,632
-
1,395,117
5,394,710
2,610,871
-
817,647
3,366,901
1,181,914
439,189
1,037,559
5,645,741
1,662,387
5,974,686
1,312,054
2,258,686
6,309,313
22,117,519
844,740
2,607,785
130,140
1,819,497
5,271,754
16,471,778
-
ACCUM.
DEPN
COST
1,221,709
2014
36,891,000
-
CARRYING
VALUE
ACCUM.
DEPN
b. Reconciliation of opening Carrying Value with Closing Carrying Value
Furniture & Fittings
Office Equipment
Motor Vehicles
Computers & Data Equipment
Leasehold Improvement
Plant & Machinery
Land
GHS
36,891,000
COST
15a. PROPERTY, PLANT AND EQUIPMENT
2015
BEIGE CAPITAL SAVINGS AND LOANS LIMITED
NOTES (Continued)
ddA
27
25,331,740
19,047,195
848,507
3,103,090
1,111,239
-
1,221,709
GHS
CARRYING
VALUE
Annual
2015
Cost
3,908,449
GHS
1,183,228
Computer Software
2014
Computer Software
2015
567,577
Opening bal.
GHS
526,470
Opening bal.
GHS
354,386
Additions
GHS
2,430,860
Additions
GHS
-
Disposal
Disposal
-
2,725,221
951,118
1,477,588
395,493
Amortisation
232,110
526,470
Closing bal.
GHS
2,725,221
Closing bal.
GHS
GHS
Amortisation
25,331,741
GHS
Amortisation
Carrying value
Cost
GHS
GHS
Amortisation
2014
3,800,406
6,820,719
10,208,575
25,744,290
848,507
3,103,090
1,111,239
19,047,196
277,384
(949,560)
752,259
3,720,323
6,820,719
-
94,027
101,602
138,950
9,873,996
Closing Bal.
GHS
1,221,709
Depreciation
GHS
-
1,031,864
8,872,647
1,724,548
12,893,523
Opening Bal. Additions/Adj. Disp. / Reclass
GHS
GHS
GHS
1,221,709
-
b. Reconciliation of opening carrying value to closing carrying value
Computer Software
2015
16a. INTANGIBLE ASSET
Plant & Machinery
Furniture & Fittings
Office Equipment
Leasehold Improvements
Land
2014
BEIGE CAPITAL SAVINGS AND LOANS LIMITED
NOTES (Continued)
ddA
85
28
526,470
Carrying value
GHS
Annual Report
2015
2015
Annual Report
BEIGE CAPITAL SAVINGS AND LOANS COMPANY LIMITED
NOTES (CONTINUED)
14 PREPAYMENTS & OTHER RECEIVABLES
2015
GHS
2014
GHS
Prepayments
32,758,410
31,513,544
Other Receivables
24,760,629
37,685,704
57,519,039
69,199,248
622,839,836
412,624,897
43,756,342
23,713,272
666,596,177
436,338,169
6,211
46,766
17 DEPOSITS & BORROWINGS
Customer Deposits
Bank Borrowings
18 ACCOUNTS PAYABLE & ACCRUALS
Accrued Salaries
Income Tax-PAYE
231,914
Social Security
129,478
Provident Fund Control Account
178,747
WHT-Goods & Services
308,407
Other Accruals
ddA
40,560
99,054
62,238
2,921
9,619,472
ATM Cardless Withdrawal Transit - 001
Staff Welfare Fund Contribution
1,665,818
56,691
-
-
2,365
10,530,921
1,919,722
19 STATED CAPITAL
No.of shares
2015
Authorised
Issued for cash consideration
Proceeds
2015
GHS
2014
100,000,000,000
100,000,000,000
120,000,000
90,000,000
120,000,000
2014
GHS
90,000,000
There are no shares in treasury and no unpaid liabilities on the shares issued.
29
86
2015
Annual Report
NOTES (Continued)
20. CONTINGENT LIABILITIES
Based on our review of events of the company, there were no contingent liabilities as at the
Statement of Financial Position date. (2014: Nil)
21. CAPITAL EXPENDITURE COMMITMENTS
There were no capital expenditure commitments as at the Statement of Financial Position
date. (2014: Nil)
22. RELATED PARTY TRANSACTIONS
a.
Transactions with related companies.
Related companies are defined as companies that control, are controlled by or under
common control with Beige Capital Savings and Loans Limited. For the year under
consideration and the comparative period, transactions with the related companies
listed below are relevant.
ddA
The Beige Group (TBG)
Parent company
Beige Business Solutions (BBS)
Under common control by the
same Parent
Access Control Security Limited (ACSL)
Under common control by the
same parent.
Beige Home
Under common control by the
same parent.
Beige Village
Under common control by the
same parent.
Brown Ball
Under common control by the
same parent.
30
87
2015
Annual Report
NOTES (Continued)
The details of transaction between the companies are:
LOANS TO RELATED COMPANIES
(BAL.)
Beige Home
Beige Village
Brown Ball
Beige Business Solutions
Total
2015
2014
GHS
GHS
3,745,000
2,955,384
1,197,942
9,305,558
5,005,000
1,835,000
1,260,442
4,229,167
17,203,884
12,329,609
1,014,988
2,024,158
1,200,000
633,989
SERVICE CHARGES RECOGNISED
ACSL – security services
BBS – vehicle rentals
TBG – management fees
b.
Transactions with key management personnel
ddA
1,200,000
Key management personnel are defined as those persons having authority and
responsibility for planning; directing and controlling the activities of Beige Savings and
Loans Company Limited (directly or indirectly) and comprise the directors and senior
management.
31
88
2015
Annual Report
NOTES (Continued)
The details of transactions between the company and its key management personnel
are as follows:
2015
GHS
2014
GHS
Director‟s fees and sitting allowances
184,000
243,500
Salaries and allowances to senior
management
384,452
488,701
Loans to senior management
454,723
520,744
23. FINANCIAL ASSETS BY CATEGORY
ddA
The accounting policies for financial assets have been applied to the items below.
2015
Description
Amortised cost
Total
-
GHS
415,770,723
231,226,228
-
231,226,228
Short term investments
-
5,000,621
5,000,621
Cash and bank balance
-
41,808,100
41,808,100
646,996,951
46,808,721
693,805,672
Loans and advances
Money market
investments
TOTALS
GHS
415,770,723
Fair value through
profit or loss
GHS
32
89
2015
NOTES (Continued)
2014
Description
Amortised cost
Loans and receivables
Money market
investments
GHS
312,542,985
88,861,511
TOTALS
Total
GHS
312,542,985
-
88,861,511
16,662,991
16,662,991
-
27,207,378
27,207,378
401,404,496
43,870,369
445,274,865
Other investments
Cash and bank balance
Fair value
through profit or
loss
GHS
24. FINANCIAL LIABILITIES BY CATEGORY
ddA
The accounting policies for financial liabilities have been applied to the items below.
2015
Description
Bank borrowings
Customer fixed term deposits
Customer demand deposits
Fair value through profit
or loss (FVTPL)
GHS
43,756,342
590.460,125
32,379,711
666,596,178
33
90
2015
Annual Report
NOTES (Continued)
2014
Description
Bank borrowings
Customer fixed term deposits
Customer demand deposits
Fair value through profit
or loss (FVTPL)
GHS
23,713,272
359,725,241
52,899,656
436,338,169
25. ANALYSIS OF INCOME, GAINS, EXPENSES & LOSSES BY CATEGORY OF
FINANCIAL INSTRUMENTS
ddA
Interest income of GHS 138,158,123 is in respect of Loans & Advances to customers
which has been classified as loans and receivables and are measured at amortised cost.
Interest income of GHS 33,410,989 is in respect of investments placed on the money
market and other markets which are classified as held – to – maturity investments and
are measured at amortised cost and financial assets at fair value through profit or loss
Bank charges of GHS 294,300 are in respect of bank balances which are classified as
financial assets measured at fair value through profit or loss.
Interest expense of GHS 10,058,918 is in respect of bank borrowings which have been
classified as financial liabilities at fair value through profit or loss.
Interest expenses of GHS 119,013,587 are in respect of short term investment from
customers and customer demand deposits which have been classified as financial
liabilities at fair value through profit or loss.
91
34
2015
Annual Report
NOTES (Continued)
26. RISK MANAGEMENT
The nature of the company‟s operations exposes it to various types of risk. The risks to
which the company is exposed are credit risk, liquidity risk and other business and
operating risks.
The company‟s risk control processes do not include that for business risks such as
changes in the business environment and in the industry in which it operates. These risks
are managed through the company‟s strategic planning processes.
Credit Risk
Credit risk arises from the potential that a debtor or counterparty is either unwilling or
unable to perform his/her obligation resulting in economic loss to the company.
The principal sources of credit risk inherent in the company‟s operations are balances
with banks, investments on the money market and other short term holdings and loans
& advances to customers.
The company manages its credit risk in relation to loans and advances as detailed below.
ddA
The company‟s Board of Directors is responsible for the overall identification and
control of risks.
The risk strategies are developed by management and implemented by the credit risk
unit of the company. The credit risk management committees are responsible for
enforcing the risk policies and limits. The risk strategies developed by management are
approved by the board.
The credit risk committees and the frequency of their meetings are;



Management Committee (MC) - weekly
Credit Risk unit
– Often
Branch Credit Committee (BCC) – weekly
The BCC of every branch of Beige is responsible for



Assessing initial requests for credit from customers.
Ensuring that documents provided by prospective borrowers meet the
company‟s basic requirements for credit delivery.
Recommending credit proposals discussed to the relevant authorities for
consideration.
The Credit Risk Unit further reviews the credit requests assessed by the BCC for
approval by the relevant authorities.
35
92
2015
Annual Report
NOTES (Continued)
The MC approves loan requests up to GHS 500,000 and recommends for approval by the
Chief Executive Officer, loan requests above GHS 500,000.
The framework for managing credit risk is the credit manual. The manual spells out the
loan approval process, recovery process, target market etc.
To minimize the risk from the other sources of credit risk the company only deposits
cash and restricts investments to major banks and institutions.
The maximum amount of credit risk by class of financial asset as at 31st December 2015
was as follows:
2015
At amortised cost
GHS
Loans and advances
420,583,780
Investments
Bank balance
2014
Loans and advances
Investments
Bank balance
At FVTPL
GHS
TOTAL
GHS
ddA
-
420,583,780
231,226,228
5,000,621
5,000,621
-
34,866,892
34,866,892
651,810,008
39,867,513
691,677,521
At amortised cost
GHS
At FVTPL
GHS
TOTAL
GHS
313,829,554
-
313,829,554
88,861,511
16,662,991
105,524,502
-
21,458,353
21,458,353
402,691,065
38,121,344
440,812,409
Collateral held in respect of loans and advances is mainly in the form of cash or cash
equivalent, motor vehicles, landed property, household items and business assets.
Cash equivalent collaterals are assigned to money market investments.
No collateral is held in respect of the bank balances and short term investments as the
taking of security for such placements is not the practice in the industry.
93
36
2015
Annual Report
NOTES (Continued)
The loans and advances portfolio is further analysed in terms of credit quality as
follows:
2015
GHS
2014
GHS
362,895,765
246,081,506
Past due, but not impaired
31,842,355
63,313,728
Impaired
25,845,660
4,434,320
420,583,780
313,829,554
Neither past due nor impaired
Total
ddA
Analysis of loans and advances individually determined to be impaired
2015
No. of days overdue
Carrying amount before
impairment loss (GHS)
Impairment
(GHS)
91 – 180
7,735,703
757,952
181- 360
4,735,186
917,401
361 and beyond
13,374,771
3,137,703
2014
No. of days overdue
Carrying amount before
impairment loss (GHS)
Impairment
(GHS)
91- 180
3,259,173
973,725
181 -360
421,359
81,817
361 and beyond
753,788
231,026
94
2015
Annual Report
37
NOTES (Continued)
Liquidity Risk
Liquidity risk is the risk that the company will encounter difficulty in meeting
obligations associated with financial liabilities that are settled by delivering cash or
another financial asset.
The company manages liquidity risk through an on-going review of future
commitments and credit facilities.
A summary of the company‟s financial assets and liabilities analysed according to their
contractual maturities are as follows;
December 31, 2015
Assets
Cash & bank balances
Investments
Loans and advances
Prepayments & other
receivables
Total Assets
Liabilities
Customer deposits
Borrowings
Account payables &
accruals
Current tax
National fiscal
stabilisation levy
Total Liabilities
Net liquidity gap
0–3
months
GHS
4 – 6 months
7 -12 months
GHS
GHS
Above 1 year
GHS
ddA
41,808,100
94,490,739
63,163,950
56,694,444
38,200,470
85,041,666
135,123,608
179,282,695
10,040,890
7,049,886
7,530,177
32,898,086
209,503,679
101,944,800
227,695,451
212,180,781
166,256,802
21,895,532
261,666,507
7,966,825
194,916,527
8,099,276
5,794,709
10,530,921
1,304,704
-
-
-
455,550
-
-
-
200,443,509
269,633,332
203,015,803
5,794,709
9,060,170
(167,688,532)
24,679,648
206,386,072
38
95
2015
Annual Report
NOTES (Continued)
0–3
months
GHS
4 – 6 months
GHS
GHS
27,207,378
31,657,351
44,810,351
41,947,370
21,104,900
15,003,867
178,573
52,762,251
71,248,926
699,912
181,479,841
26,373,564
103,805
-
-
-
145,726,255
36,287,340
124,711,089
207,853,405
101,430,147
5,395,814
1,919,722
36,233,133
-
100,029,088
18,317,457
-
174,932,530
-
65,343
-
-
-
Total Liabilities
108,811,026
36,233,133
118,346,545
174,932,530
Net liquidity gap
36,915,229
54,207
6,364,544
32,920,875
December 31, 2014
Assets
Cash & bank balances
Investments
Loans and advances
Prepayments & other
receivables
Current tax
Total Assets
Liabilities
Customer deposits
Borrowings
Account payables &
accruals
National fiscal
stabilisation levy
7 -12 months
Above 1 year
GHS
-
ddA
Operational Risk
Operational risk is the potential for loss from failed systems and processes, staff
incompetence and misconduct and uncontrolled external events. These risks are
monitored and controlled by BEIGE through well designed operating manuals that
reflect the main operating procedures, business continuity planning, reconciliations,
internal audit, timely and reliable management reporting.
39
96
Profits
2012
2013
2014
ddA
2015
We are the Most Profitable
Savings & Loans Company
ddA
find us
Everywhere
You can
98
www.beigecapital.com
2015
Annual Report
ddA
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