Wednesday 6 September 2017

Invest in Societe Generale Ghana Limited

The present name, Societe Generale Ghana Limited, was adopted in 2013 ten years after Societe Generale bought controlling interest in the bank.  SG Financial Services Holding, a wholly-owned subsidiary of Societe Generale (France), controls 56.7% of the bank at present. Societe Generale (France), one of the foremost global financial institutions, has presence in 66 countries including 18 African countries.

Operations are being streamlined to improve efficiency. Corporate banking remains the bank's forte. The bank's fundamentals have not deteriorated.  Gross revenue has been growing at a compound rate of 27% over the past three years. 

Also, the bank is adequately capitalised and generates free cash flow for shareholders. A value between GH¢1.8 and GH¢2.6 per share was estimated for the bank.

We expect a total return of 78.4% in the medium term.

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