In response to robust demand in the market for Bayport Savings and Loan’s latest bond issuance, the company is set to return to the market later this month for another round of capital raising.
Akwasi Aboagye, Managing Director-Bayport Ghana, made this announcement while noting that additional details will be shared once regulatory approval has been secured.
“We are encouraged by the positive response we received despite our institution’s absence from the market for several years. The funds obtained from the previous issuance were strategically directed toward bolstering the company’s assets,” he stated during a Facts Behind the Figures session hosted by the Ghana Stock Exchange (GSE).
Bayport earlier this year concluded a successful GH¢50million two-year senior unsecured floating rate notes issuance in Accra, Ghana. This marked the first series and tranche of notes under its newly established GH¢500million medium-term notes and bond programme. Subsequently, those notes were admitted to listing on the Ghana Fixed Income Market segment of the GSE, effective from March 4, 2023.
The issuance followed a series of robust investor engagements, including a physical roadshow where Bayport provided comprehensive updates to its stakeholders in the investor community on the issuer’s trading performance and business strategy. These efforts have enabled Bayport Ghana to thrive in an increasingly challenging macroeconomic environment.
1H23 review
According to Bayport’s unaudited financial statement as of June 2023, the company’s total assets reached GH¢930.27million – up from GH¢878.37million in June 2022. Key components of the asset portfolio include cash and cash equivalents, loans and advances to customers, other assets, property and equipment, intangible assets and more.
Cash and cash equivalents increased by approximately 5.56 percent, loans and advances to customers rose by approximately 2.1 percent, and other assets grew by approximately 33.23 percent. On the liabilities side, Bayport reported total liabilities of GH¢722million for June 2023, compared to GH¢686.75million in June 2022.
By end of the year’s first-half, Bayport had experienced a 2 percent increase in loan advances compared to the same period last year.
Bayport reported a profit of GH¢11.27million, primarily due to effects associated with the debt exchange. The CEO of Bayport however stressed that the company does not anticipate any further impairments.
Performance drivers
Bayport’s overall profitability was positively influenced by an improvement in its impairment position, achieved through several initiatives in the collections space. These included refining processes for reinstating lapsed loans, enhancing field collection operations, and resuming sales activities after a period of dormancy due to macroeconomic factors. These measures enhanced provision coverages, resulting in improved performance.
Digital innovation
Over the past three years, Bayport has embarked on a digital journey – providing training to all back-office operational staff and agents on new applications that have enhanced loan turnaround time and customer experience.
Additionally, a self-service e-money platform was launched as part of the company’s transition to a cashless operation. Other digital initiatives include the introduction of self-origination via WhatsApp and USSD, allowing customers to apply for loans using their mobile phones.
The CEO emphasised: “With digitisation, we are transforming our business for rapid and sustainable growth while providing top-tier financial solutions for our customers. Through these and other initiatives, Bayport continues to lead in the savings and loans sector”.
ESG Commitments
Bayport highlighted its commitment to environmental, social and governance (ESG) principles, finalising the Client Protection Charter to prioritise customer interests. The company also inaugurated an employee-led corporate social investment (CSI) initiative.
“Our half-year report underscores our commitment to growth and financial stability. With increased assets, steady liabilities and a healthy equity position, the company is on a positive trajectory in contributing to the overall economic resilience of Ghana,” Mr. Aboagye added.
