Bayport Savings and Loans PLC reported a 17.7% rise in pre-tax profit to GHS 38.7 million for 2024, up from GHS 32.9 million the previous year, according to its annual financial statements.
The Ghana-based microfinance institution attributed the growth to increased interest income, which climbed 32.5% to GHS 415.6 million, driven by higher loan disbursements.
However, the company opted against dividend payments for the second consecutive year, redirecting GHS 18.6 million to credit risk reserves—a tenfold increase from 2023—amid rising loan impairments. Allowances for expected credit losses on loans surged to GHS 91.7 million, with non-performing loans totaling GHS 74.9 million. Auditors flagged loan impairment calculations as a critical audit area due to complex economic assumptions.
Capital adequacy ratios declined to 12.43% from 16.02%, nearing Ghana’s 10% regulatory minimum, while total borrowings rose 27% to GHS 545.4 million. The board cited ongoing economic uncertainties and tighter liquidity conditions as factors influencing capital management decisions.
Governance disclosures revealed board restructuring, including the August 2024 appointment of Bryan James Arlow as non-executive director following two resignations. The company spent GHS 220,149 on corporate social responsibility initiatives, including scholarships and infrastructure donations.
PricewaterhouseCoopers issued an unmodified audit opinion, confirming compliance with IFRS and local banking regulations. Bayport’s retained earnings grew marginally to GHS 154.9 million, with total assets reaching GHS 1.21 billion, up 18.6% year-on-year.
