SSNIT returns high yields on investments in banks
The investments of the Social Security and National Insurance Trust (SSNIT) in the commercial banks are yielding positive returns for the scheme.
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The high returns are said to be one of the major sources of funds for the sustenance of the scheme in recent times.
In mid-2011 for instance, SSNIT, which was the largest shareholder of The Trust Bank (TTB), transferred its 61 per cent shares to Ecobank.
According to the Chief Finance Officer of Ecobank Ghana, Mr Edward Nartey Botchway, the key driver for the bank was its ability to ensure good value for its shareholders, a task it had been able to undertake in the last few years.
“If you look at the value of the investment that has been made into this bank by SSNIT from 2011 when we merged with The Trust Bank , the value of the share price has gone up by 140 per cent,” he said.
He explained that “last year alone the payout of dividends went up by 84 per cent and I think clearly, these are good numbers and this shows that the bank is doing well and would continue to return good value to SSNIT”.
SSNIT and SG
For his part, the Managing Director of Societe Generale (SG) Ghana Limited, Mr Sionle Yeo, said throughout the years, the bank had consistently paid annual dividends to SSNIT as one of its major shareholders.
He congratulated SSNIT as it celebrated its 50th milestone this year and added: “We are looking forward to SSNIT’s continued support for Societe Generale Ghana to deliver continued good quality of service to our customers and to generate more value to our shareholders; SSNIT being the second largest.”
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SSNIT in Cal Bank
The Managing Director of Cal Bank Limited, Frank B. Adu Jnr, noted that “over the past eight years, SSNIT has been Cal Bank’s majority local shareholder and during capital-raising periods subsequently, has continued to make sure that Cal Bank remains a local Ghanaian financial sector operator in the market which has been dominated by foreign private equity funds and so-called strategic investors”.
He said Cal Bank in turn had been a good investment for SSNIT, generating good returns and paying “religiously a 33 per cent annual dividend to our shareholders including SSNIT”.
“We would like to take this opportunity at this time of the anniversary of SSNIT to congratulate them and to encourage them to continue doing what they are doing to the benefit of the economy and the people of Ghana,” he added.