Accra, Aug.15, GNA –
Bayport Savings and Loans PLC says it is ready to consolidate its dominance in
government payroll lending by enriching the proposition and experience of its
In this direction, the company said it was focusing on the use of digital platforms to deliver financial services as part of its strategic direction to reach the unbanked and underserved communities in the country.
Mr Nii Amankra Tetteh, the Managing Director of Bayport Saving and Loans Plc, said this when the company took its turn on the facts behind the figures programme of the Ghana Stock Exchange (GSE).
It was to enable Bayport to brief the investors, brokers and journalists on its 2019 half-year performance.
Mr Tetteh said the move to use digital delivery channels is to reduce the cost of operations and expand the footprint of the company across the country.
As at June this year, the company has established about 34 digital centres across the country though which clients access financial services.
Mr Tetteh said the new area of focus of the company was to offer long-term loans to its clients at better interest rates to give them financial relief, saying the move was to improve the interest and income of the company.
Bayport closed the first half of 2019 with a net interest income of GH¢125.3 million while loans and advances grew by 23 per cent to GH¢663 million compared to 2018’s half year positions of GH¢538 million.
The growth was largely due to the company’s response to market dynamics for longer term loan, adding that the cost of funds to the business remained largely flat as Bayport took significant steps within the industry’s challenges to replace expensive funding with cheaper funding.
Mr Tetteh said interest expense went up by 21 percent as a result of the additional funding raised to support the growth of the loan book.
The Managing Director said interest expense, however, reduced by six percent because of branch closures and growth in digital channels.
He said Bayport management would build on the success story to consolidate the company’s market leadership position in the savings and loans industry.
The shareholders of Bayport Ghana are Bayport Management Limited with 98 per cent, SSNIT with one per cent and BIHQ with one per cent.
The company has raised about GH¢300 million from the Ghana Fixed Income Market of the Ghana Stock Exchange from a shelf amount of GH¢500 million.