Standard Chartered Bank optimistic about future growth prospects

Standard Chartered
Standard Chartered

Standard Chartered Bank Ghana PLC is optimistic about future growth prospects after an impressive performance last year despite the covid-19 pandemic.

“Having weathered the storm last year, we approach 2021 with cautious optimism as the economic and social impact of the pandemic continues to unravel,” the Board Chairman, Dr Emmanuel Kumah, told shareholders at the annual general meeting.

He was, however, hopeful that the speed of vaccine distribution globally and the easing back to normal in most countries will see a strengthening of the global economy.

On the bank’s 2020 results, Dr Kumah said, “We remain strong and profitable. Our milestone anniversary this year, presents us with a unique opportunity to build towards a sustainable future as we continue to transform our business to create increased shareholder value.”

The Board declared dividend on ordinary shares of GH¢1.74, culminating into GH¢234.4m.

This represents 23 per cent of the Bank’s total income for 2020.

The bank’s revenue grew by 20 per cent year on year (YoY) to GH¢ 1.02 billion compared to previous year of GH¢ 853.0 million.

Operating cost dropped by 12 per cent YoY to GH¢288.1 million from GH¢328.9 million recorded in prior year.

Impairment provision decreased to GH¢59.3 million, driven by decrease in impairments across all clients in addition to increased recoveries.
Operating profit increased by 59 per cent YoY to GH¢ 675.4m from GH¢424.2m in prior year.

Return on equity for the period was 32.6 per cent compared to prior year of 25.5 per cent
Earnings per share (EPS) increased to GH¢3.54 from GH¢2.08, Net loans and advances to customers decreased by four per cent from 2019 to GH¢1.69 billion in 2020 driven mainly by repayment from clients.

Customer deposits grew by six per cent from GH¢5.42 to GH¢5.75 billion, Capital Adequacy Ratio remained strong at 24.9 per cent from 30.3 per cent recorded in 2019.

Mansa Nettey, Chief Executive, commenting on the results, said “despite the extraordinary challenges of the year in review, we delivered a strong financial outcome. Our refreshed priorities, coupled with our purpose will help us scale up and deliver on our business goals in 2021. We are focused on offering unwavering support to our clients, providing differentiated experiences and helping them navigate this period of uncertainty.”

Mr Kweku Nimfah- Essuman, Chief Financial Officer, said, “The investment made into our digital capabilities paid off as our clients leveraged on the enhanced payment proposition.

This led to a smooth transition into our new ways of banking for our clients.

“In 2021, we will continue to strengthen our digital transformation and innovation capabilities to offer clients more convenience for their banking needs.”

“During the period under review, The Bank provided emergency relief valued at GH¢4.3 million towards COVID-19 relief efforts. Working with partner NGOs, relief efforts were channeled to support widespread testing, provide PPE for frontline healthcare workers and support the vulnerable particularly children,” he added.

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