Standard Chartered Bank posts strong financial performance

Standard Chartered Bank Ghana PLC has posted strong financial results for 2021, demonstrating a trend of sustainable and profitable growth with a healthy and sufficiently diversified balance sheet that generates attractive returns to shareholders.

The Bank’s operating income grew by 5 per cent from GH¢1.02 billion to GH¢1.07 billion while Operating expenses increased by 33 per cent from GH¢288 million to GH¢382 million due to non-repeat of provision release for Global Business Services costs which suppressed 2020 costs, investments to ensure seamless work-from-home arrangement and the impact of inflation on general operating costs.

Loan impairment eased from a provision of GH¢59 million in 2020 to a recovery of GH¢6 million in 2021 aided primarily by provision release on legacy non-performing assets.

Profit before tax subsequently ended at GH¢695 million, up 3 per cent year-on-year while the Return on equity was 26.6 per cent compared to prior year of 32.6 per cent.

Return on net own funds was also 28.7 per cent compared to 35.3 per cent recorded in 2020 and Earnings per share (EPS) was at GH¢3.23 against GH¢3.54 recorded for prior year.

The Bank’s Capital adequacy ratio of 33.4 per cent was well above the regulatory minimum of 11.5 per cent.

Commenting on the 2021 results at the 52nd Annual General Meeting to present the Annual Report and Financial Statements for the year ended 31 December 2021 to its shareholders,

Board Chairman, Dr Emmanuel Kumah said: “Overall, our financial results show evidence of a strong underlying business resilience in the face of uncertainty and a bank that is tracking very well against its medium-term financial and social targets. The Bank remains profitable, highly liquid and well capitalised.”

The Bank reinforced its commitment to lead with purpose, using its unique capacity to connect capital, people, ideas and best practices, both locally and globally, he said.

Further, the Bank revealed a set of Stands to help address societal challenges such as lifting economic participation, helping to reduce carbon emissions, and supporting a fairer model for globalisation.

Commenting on these commitments, Chief Executive, Mansa Nettey said, given the Bank’s sustained performance and delivery of shareholder value, it would continue to be guided by our purpose and connect our strategy with opportunities to drive growth and deliver our societal ambitions”.

Chief Financial Officer, Albert Asante, commented, “As a Bank, we will continue to ensure returns on capital remains very strong for our shareholders. Our Bank maintained a highly liquid and adequately capitalised balance sheet which is well positioned to seize opportunities within the market.”

During the period under review, the Bank marked its 125th anniversary, a significant milestone for the Bank which began its operations in 1896 and has since been at the forefront of financial development in Ghana.

For the last twelve and a half decades, the Bank has put its capital behind opportunities to support the socio-economic development of Ghana, serving the people and businesses which drive economic growth.

The Board declared dividend on ordinary shares of GH¢1.84 per share culminating into GH¢247.9m. This represents 23.2% of the Bank’s total income for 2021.

Standard Chartered Bank Ghana PLC is Ghana’s premier bank established in 1896. We are part of a leading international banking group, with a presence in 59 of the world’s most dynamic markets and serving clients in a further 85. Our purpose is to drive commerce and prosperity through our unique diversity.

Source: GNA

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