This year and next could be worse than 2013 despite the challenging situations in which businesses operated last year, Societe Generale Ghana Chief Executive Officer Gilbert Hie has said.

Enumerating the increase in inflation, depreciation of the cedi and high yields on government's Treasury bills and bonds, he said these factors will keep interest rates high and make lending to customers come at a higher price.

"I believe that interest rates will not go down in Ghana this year. Inflation is increasing currently at 14 percent, there is depreciation of the cedi and high yields on T-bills and bonds from government.

"I am  really sad for the companies and individuals, but we will remain -- at least for 2014 -- in a period ofof high interest rates and we should not dream. It will remain high for 2014 and 2015. This is because no macro- economic indicators are lowering to decrease the interest rates in this country.”

Speaking at the company's annual general meeting in Accra, Mr Hie added that the implementation of Value Added Tax (VAT) on financial services and new exchange rate regulations mean the cost of banking will go up, and banks cannot lend in foreign exchange to corporate customers who are not exporters.

“We now have fewer activities with retail people because they cannot use their foreign accounts as they used to use because of restrictions. All these details cumulated are not favourable to banking activities.

“I really believe that the implementation of the exchange regulations by the Bank of Ghana will also not help in credit distribution. This means that 2014 will be probably more difficult than 2013,” he said.

The bank recorded a net profit before tax of GH¢50.2 million in 2013, whereas in 2012 it recorded GH¢41.1 million. After-tax profit in 2013 stood at GH(t36.4million, while in 2012 it made GH¢30.3 million.

The bank's total operating income increased by 31.27 percent to GH¢167 million and current operating expenses grew by 23.27 percent to GH¢100 million.

Shareholder funds increased from GH¢169.8 million in 2012 to GH¢193.7 million in 2013, representing an increase of 14.07 percent.