ANNUAL REPORT

2015

Savings and Loans

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ANNUAL REPORT

2015

Savings and Loans

Add... every year we GROW.

And steadily, we are inching towards the bar weve set for ourselves.

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2015Annual Report

Contents

Financial Highlights Page 2

Corporate Information Page 4

Honours Page 5

Board of Directors Page 7

Executive Committee Page 14

Executive Summary Page 22

Strategic Operational Plan (SOP) 2016 Page 24

Report of the Chairman Page 28

Report of the Chief Executive Officer Page 33

BEIGE Academy Page 53

Financial Statements Page 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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2015Annual 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

For the Year Ended December 31 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

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2015Annual Report

We are Home-Grownso Believe with US

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2015Annual Report

Corporate Information

AUDITORMorrison & Associates

2nd Floor, Trinity House, Ring Road East P. O. Box C2890 Cantonments, Accra

T: 0302 771372, 0302 771373 E: morrison@africaonline.com.gh / E: morry_general@yahoo.com

CONTACT ADDRESSBlock 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 HotelP. O. Box AF1212

Adenta, Accra

Joseph Akyeampong & Co #12 Olympics Road, Kokomlemle

P. O. Box CT6509 Cantonments Accra-Ghana

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)

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2015Annual Report

Honours

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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2015Annual Report

Honours

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. Nyinakus team from BCSL, received the award on his behalf.

From left: Michael, Kezia, Alex, Nana Afia, Stephen.

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2015Annual Report

Meet The Board

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BOARD OF Directors

2015Annual Report

Kofi Otutu Adu LabiBoard 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 Banks 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.

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 Banks 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

2015Annual Report

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Mike NyinakuChief Executive OfficerMike 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 Ghanas emerging business leaders, he features prominently in many speaking engagements aimed at promoting thought leadership, youth and business development.

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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BOARD OF Directors

2015Annual Report

Elikem Nutifafa KuenyehiaDirector

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, Africas 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 banks 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.

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: Ghanas 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 Africas 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 Universitys 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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BOARD OF Directors

2015Annual Report

Theophilus AdomakoDirector

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.

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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BOARD OF Directors

2015Annual Report

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.

In addition to relevant local experience, Dorothy possesses wide international exposure in the corporate world, having worked with one of the worlds 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 worlds leading banks, Standard Chartered PLC in their London and Dubai offices.

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2015Annual Report

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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2015Annual Report

Meet The EXCO

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2015Annual Report

EXECUTIVE COMMITTEE

Mike NyinakuChief Executive OfficerMike 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 & Touch.

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 Ghanas emerging business leaders, he features prominently in many speaking engagements aimed at promoting thought leadership, youth and business development.

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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2015Annual Report

EXECUTIVE COMMITTEE

Charles OdonkorDeputy 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.

Prior to working with BCSL, Charles was the Head of Corporate and Regional Director at UBA Ghana Ltd responsible for ma-jority 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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2015Annual Report

EXECUTIVE COMMITTEE

Louisa LaryeaChief Risk OfficerLouisa 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.

Louisas 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.

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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EXECUTIVE COMMITTEE

Dawda M. HafisdeenChief 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 Companys growth strategy to the western part of Accra and the Ashanti Region.

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

2015Annual Report

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2015Annual Report

EXECUTIVE COMMITTEE

Edwin Lucas RandolphChief Operating OfficerEdwin 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 Franaise (DELF and DL).

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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EXECUTIVE COMMITTEE

Patrick Nathan OfosuChief 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 banks branch expansion strategy across Ghana.

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 organizations 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.

2015Annual Report

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The BEST SAVINGS & LOANSCOMPANY 2015

we are THE BEST

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2015Annual Report

Executive Summary

Throughout 2015, the focus in the Companys 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 BCSLs operations as the banks 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 MobilizationThe 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.

Bank of Ghana (BoG) On-Site ExaminationThe 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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2015Annual Report

Statutory AuditThe 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 BankThe 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.

The delegation on tour at Old Mutual in Jberg 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 companys operations in 2016.

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Executive Summary

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2015Annual Report

The flow chart below, depicts a summary of the Companys 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 - 16

SOP 16

Grow DepositBase

Expand Customer

Base

Widen Coverage in Micro Banking

Place More Premium

on Demand Deposits

Reduce Interest Rates

Open More Accounts / Acquire

More Customers

Open More Outlets

Recruit More Marketing

Agents

Pursue More Lower Cost

Deposits

AggressivelySell Demand

Deposits

SOP 16

How were doing it

Core Areas of Focus

Where were going in 2016

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2015Annual Report

We project to have a Nationwide coverage by the end of 2017

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 Wea Spintex

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

Branch Network

The Chart below shows some of the Banks branches.

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2015Annual Report

Key Results Areas (KRA)

In achieving its objectives, BCSL deployed five (5) interventions;

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.

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 & ControlBCSL, since inception has shown progressively, that it is indeed an avid watcher of the quality of its workforce in the precise delivery of the Companys 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

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.

PlaceFor 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 face-lifting 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.

ProcessIn 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 control-tight. 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, well-organized, 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.

ProductIn 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 ExcellenceThe 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.

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2015Annual 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.

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2015Annual Report

Report of the Chairman

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2015Annual 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 EnvironmentThe local economy during 2015, was not significantly different from the previous year. The Cedi continued its poor showing against the worlds 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 of the CompanyDespite 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.

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 Companys 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 CapitalThe Company ended the year with a stated capital of GHS120m. This far exceeds the Regulators equity requirement of GHS15m and further presents a comfortable indication of the Companys resolve to take advantage of bigger volumes of business in the industry.

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StaffBut 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.

AwardsThe Companys 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 GovernanceThe 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

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Insurance Trust and the Extinguishers of the Ghana National Fire Service clinched the mens and womens 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 GH24,000.

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

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Report of the Chief Executive Officer

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Report of the Chief Executive Officer

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 SpecificsThe 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 Regulators 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 would-

be clients. Similarly the BoG, being the Regulator, came under sharp criticism for failing to be proactive in their regulatory responsibilities in the past.

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 Companys decision to disburse only strategic and predictable risk assets.

Financial Performance

1. PROFIT OR LOSSA. Interest IncomeThe Companys 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 IncomeFee 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.

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C. Interest ExpenseA 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 on-lending. 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 ExpenseGHS34.2million 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 non-core 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

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. ProfitabilityThe year-end profitability of GHS10.8million was a much improved result over 2014 position of GHS4.8millon, an increase of 125%. The current years profit represent an average return on equity of 9%, an improvement over the previous years 6%.

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

34,257,471

TOTAL

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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. AssetsTotal 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

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 AcquisitionDuring 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.

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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 AdvancesFrom 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.

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 BookThe 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 Banks 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.

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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.

Clientele NumbersThe 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.

Deposit and Investment Bands

Amount 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%

PercentageConcentration

Number of Clients

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

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

Demand Deposit

Fixed Term Deposit

Grand Total

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Maturity Profile and Deposit RetentionWith 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;

Deposit maturity falling due in the next 30days include all demand deposits of over GHS41million.

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.

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

> 60 Offices, > 1000 Staff 5 Regions 8 years Annual growth = 250% Ghanaian Bank Total Assets GHC 1bn

About Us About CEO Ownership

Ghanaian ACCA Fellow

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 ...

Investment Opportunity

Medium term debt Equity partnership

2015

2016

2017

2012

2013

2014 Total AssetsDeposits & Borrowings

Stated Capital

Total AssetsDeposits & Borrowings

Stated Capital

Total Assets

Deposits & Borrowings

Stated Capital

Total AssetsDeposits & Borrowings

Stated Capital

Total AssetsDeposits & Borrowings

Stated Capital

Total AssetsDeposits & Borrowings

Stated Capital

540m

436m

90m

297m

247m

40m

127m99m

20m

818m

667m120m

?

?

?

?

?

?

Ghc Ghc

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 662222,,883399,,883366

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2015Annual Report 5-Year Financial Performance

-Trend

KEY INDICATOR 2011 2012 2013 2014 2015INCOME 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%

Key Growth Rates

51%Total Assets

53%Total Deposits & Borrowings

41%Total Income

33%Loans & Advances

Figures in Millions of GHS

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2015Annual Report5-Year Financial Performance

-Trend

- 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000

2011 2012 2013 2014 2015

Operating Expenditure

-

50,000,000

100,000,000

150,000,000

200,000,000

2011 2012 2013 2014 2015

Interest Income

-

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

2011 2012 2013 2014 2015

Interest Expenditure

-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

2011 2012 2013 2014 2015

Profit before Tax

- 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 700,000,000 800,000,000 900,000,000

2011 2012 2013 2014 2015

Total Assets

-

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

2011 2012 2013 2014 2015

Cash and Investment

- 20,000,000 40,000,000 60,000,000 80,000,000

100,000,000 120,000,000 140,000,000 160,000,000

2011 2012 2013 2014 2015

Shareholders Fund

-

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

2011 2012 2013 2014 2015

Stated Capital

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Balance Sheet

Total Assets GHS 1Billion

We have a healthy

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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-the-art 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.

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 & DeploymentPreparatory 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

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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

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.

TrainingVarious trainings programmes (both locally and internationally) were afforded staff in the course of the year. This remain in line with the Companys 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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Participation in AFRACA ConferenceThe 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.

BCSL Representatives (arrowed) together with other participants at the AFRACA Conference in Nairobi Kenya

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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.

Team Celebrations

Aerobics session for staff

EventsIn 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-of-year message and hinted the entire team about the Companys aspirations for 2016 and beyond. The CEO also took the opportunity to officially introduce the Deputy Managing

Director (DMD), Charles Odonkor, to all staff present and admonished colleagues to lend the DMD all the needed support to carry out his mandate.

A cross section of excited staff at worship

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2015Annual Report

Thanksgiving with the CEO

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We are led and managed by competent

and Resourceful Leadership

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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.

The theme for this years 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 ownershipnot origin. OWNERSHIP. So I checked up the profile of the top 25 companies in Ghana in terms of contribution to GDP. Data

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 Im not sure Im 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

rather indulge me as I choose to share my thoughts on the case as a growing young man.

First, Id share my historical thoughts on how entrepreneurship has evolved over the years in Ghana, Id touch on why I believe in Ghana, Id give my opinion on PPP and most of all Id share a secret with youits about me and the President. You know, Im 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 nowId 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 50sand they include my seniors, Edward Effah and Ken Ofori Atta. Generation E; are in their 40shave gathered some momentum and started doing things. They are too many and I cant 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 generationthey are under 30 years watch that space.

Ladies and gentlemen, Ive 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, its difficult to count 20 institutions that are aged over 30years and are of Ghanaian

CEO Engagements

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ownership. Why is this so? When you look around you see products of the generation Cs and Dsmostly. Does it suggest that generations As and Bsdidnt produce anything?NO. I strongly disagree. They did, but you know whatthey 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 70s and 80s. I guess only Asoma Banda, Appiah Menkah & probably a handful survived. Today where are their institutions.Ladies and Gentlemen?

So you see, the generation Cs & Ds 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 theres 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 its 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, Im 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 its 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. Ghanas 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!

As a nation how are we going to harness these opportunities for the benefit of nationals and country? Public sector and policy makersstay in your lane and lets not stifle private sector. Rather, Public sector; invigorate us to deliver so you get the praise for it because we cannot challenge youyouve got the power. Too many of us are hungry to work. Dont 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. Its 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. Im sure most of you have been to Dubai and in so doing used the Emirates Airline. And once youve been to Dubai you would know about the BURJ KHALIFAthe 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 KhalifaIn 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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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. Whats 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.

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 didnt have time for small stuff he wanted big ideas thats 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. Theres a lot of action documents already, I believe that what we need are EXECUTORS, DOERS, and DEVELPOMENT ARCHITECTS, who dont 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 Im sure youve been waiting to hear why Im a fan of the President. Ok Id tell you.

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 fore-bearers. 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, Im committed to Ghana to the core, regardless of who is in control and Id 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.

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The Talent Development Centre

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About the BEIGE Academy

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. 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.

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Programs We Offer

The programs we offer are in two broad categories; Tutorialprograms LifeSkillsDevelopmentPrograms

TutorialPrograms

SpecialistSkillsDevelopment GeneralSkillsDevelopment ManagementSkillsDevelopment EntrepreneurshipSkillsDevelopment

LifeSkillsDevelopmentPrograms

TheBEIGETalent LeadershipSeries Life(GainingaMasteryofLife) GROW

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The BEIGE Talent

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.

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. Well be doing ourselves a great deal of good if 30% of them are graduates from the TBT programme. Mr. Nyinaku continued that, were 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.

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.

100 BENEFIT FROM The BEIGE Talent PROGRAMME.

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, Im a proud team member with the Controls and Compliance Department at The BEIGE Group office at East Legon.

Im 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 Im now at the CEOs Secretariat. The staff have been helpful in facilitating my learning process. Im looking forward to becoming a successful banker.

God bless The BEIGE Group for this opportunity.

Prof. Stephen Adei at the induction ceremony In a group photo with The Board Chairman of BCSL (seated right)

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The BEIGE Talent

Finding the right CSRIn 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 ProposalAfter 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 were 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 ServiceThe 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). Train