Standard Chartered Bank Ghana PLC has recorded a revenue of GH¢1.07 billion for the year 2021.
This
represents a five percent growth in revenue compared to the GH¢1.02 billion
recorded in the previous year.
Profit before tax for the Bank also stood at GH¢695 million for the 2021
financial year.
Operating
costs increased from GH¢288 million to GH¢382 million driven by investments in
2021 to ensure seamless work-from-home arrangements, and the impact
This
resulted in a profit before tax of GH¢695 million compared to the GH¢675
million recorded in 2021.
The
Bank’s balance Sheet also remained healthy and grew significantly by 26
percent, from GH¢8 billion in 2020 to GH¢10 billion in 2021.
Chief
Executive Officer of Standard Chartered Bank Ghana PLC, Mansa Nettey, speaking
during the Bank’s 52nd Annual General Meeting, said the growth in the year
under review proves that her outfit is on track to achieve their medium to long
term objectives.
“Given
the Bank’s sustained performance and delivery of shareholder value, we will
continue to be guided by our purpose and connect our strategy with
opportunities to drive growth and deliver our societal ambitions.”
Despite
the many gains gotten in 2021, the Bank’s profit after tax saw an 8 percent
drop from GH¢4.78 million in 2020 to GH¢4.36 million in 2021.
In
spite of this, Standard Chartered declared dividend on ordinary shares of
GH¢1.84 for the 2021 financial year compared to GH¢1.74 paid in the previous
year.
Dr.
Emmanuel Oteng Kumah, the Board Chairman of Standard Chartered Bank Ghana PLC,
sought to explain the reason behind this move.
“What
motivated us is the idea that we think shareholders deserve part our good
performance. The reason why our profit after tax declined was because part of
our profit reflects the underlying business activities that we’re undertaking.
So although it dropped, we felt that there was enough revenue to be able to
compensate for that so we proposed that we increase the returns to our
shareholders,” he noted.
During
the period under review, Standard Chartered Bank Ghana PLC 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.
Here is
a summary of Standard Chartered’s performance for the year ended 31st December
2021.
· Operating income grew by
5 percent from GH¢1.02 billion to GH¢1.07 billion.
· Operating expenses
increased by 33 percent 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 percent year-on-year.
· Return on equity was 26.6
percent compared to prior year of 32.6 percent.
· Return on net own funds
was also 28.7 per cent compared to 35.3 percent recorded in 2020.
· Earnings per share (EPS)
was at GH¢3.23 against GH¢3.54 recorded for prior year.
· Capital adequacy ratio of
33.4 percent was well above the regulatory minimum of 11.5 percent.