Standard Chartered posts stronger income in 2022

Standard Chartered Bank Ghana PLC has posted GH¢1.21 billion operating income for last year, 16 per cent growth compared to the GH¢1.05 billion recorded in the previous year. 

The growth in income was at the back of rise in volumes for term and trade loans buoyed by increases in interest rates.

Net interest income increased by 29 per cent from GH¢627.50 million to GH¢807.79 million due to improvement in net interest margins as well as volumes, as customer deposits increased to GH¢8.18 billion for last year from GH¢7.55 billion the previous year.

The broad-based growth came from all product lines, with the largest contributors being Corporate, Commercial and Institutional Banking (CCIB) which brought in GH¢831 million, an improvement from the GH¢733 million recorded in 2021.

Also, income from Consumer, Private and Business Banking increased by 18 per cent from GH¢318 million to GH¢376 million.

The bank’s operating profit before impairment charge was GH¢777.87 million for last year compared to GH¢688.61 million posted for the same period in 2021, a growth of 13 per cent.

The Chairman of the Board of Directors, Ebenezer Twum Asante, addressing shareholders in his first annual general meeting (AGM) affirmed Standard Chartered’s commitment to Ghana.

He expressed his optimism about the future and the bank’s ability to emerge stronger.

Mr Asante said, “We have a valuable franchise with strength and quality at its core, great client relationships, and the right team of people”.  

He stated that in spite of the headwinds in 2022 the bank was seeing strong signs of a rebound as evidenced in its strong first half 2023 performance.

Financial performance highlights

The bank’s asset quality as measured by the Non-Performing Loan (NPL) ratio on gross basis, improved substantially from 24 per cent in 2021 to 12 per cent in 2022, the lowest in the last five years.

Due to the challenging environment, which led to a rise in the general prices of goods and services, the bank’s expenses increased by 20 per cent, from GH¢362.87 million to GH¢437.09 million.

With the effects of the external environment and the Domestic Debt Exchange Programme (DDEP), among others, translating into total impairment charge of GH¢1.16 billion, the bank recorded loss after-tax of GH¢297.78 million for the period compared to the GH¢436.93 million after-tax profit for 2021.

In spite of the loss, Standard Chartered Bank’s Capital Adequacy Ratio (CAR) remained strong at 23 per cent significantly above the 10 per cent regulatory limit, although it is below the 33 per cent recorded in 2021.

Driving impact in communities

Mr Asante said the bank would “continue to support communities though Futuremakers, our global initiative to tackle inequality and promote youth economic inclusion,” adding that since its launch in 2019, together with the Standard Chartered Foundation, the bank had invested over GH¢13 million through various programmes to support over 40,000 young people to learn, earn and grow.

Last year, Cohort Two of flagship Women in technology incubator programme came to an end during which 19 women-owned businesses across agriculture, hospitality and e-commerce participated in the initiative.

“Five of the most outstanding businesses received the equivalent of $10,000 each to scale up their businesses.

These businesses employ over 290 people with revenues of over GH¢770,000,” Mr. Asante told the AGM.

He cited other programmes such as the Youth Employability skills, which had now reached over 28,000 young people, including over 2,000 persons living with disability, across the country, with 237 start-ups being launched by the beneficiaries and 118 existing jobs being expanded. 

Outlook

Mr Asante assured the shareholders that in spite of the challenging economic environment, which reflected in the bank’s performance in 2022, “We remain a resilient bank with a strong underlying business”.

The board chairman commended the board and Management Team led by Mansa Nettey for their tenacity and resilience throughout the difficult period, supporting clients, protecting the interest of shareholders while preserving the operational and financial resilience.

He reemphasised the bank’s focus on executing against the four priorities of Network, Affluent, Mass Retail and Sustainability while exploring areas of opportunistic growth.

He said the bank was seeing signs of a rebound as evidenced in both the half-year results and that the bank was well equipped to navigate the challenging times.

“We have a robust business model and a clear strategy.

We will continue to focus on opportunities that exist within our redefined risk appetite while taking advantage of technology to open new opportunities. 

Going forward

Ms Nettey said for this year Standard Chartered Bank Ghana PLC remained focused on its refreshed strategy and the proactive measures put in place to protect the franchise.

She added that the bank continued to make good progress on its four strategic pillars of Network, Affluent, Mass Retail and Sustainability, adding “these themes and areas of focus are even more relevant today as ever and will continue to drive future growth.”

Explaining further, Ms Nettey said the bank continued to unlock the value of its Affluent Client portfolio with suitable client propositions, coverage models and advisory capabilities.  

“To deepen our wealth management proposition, we received regulatory approval to set up Standard Chartered Wealth Management Limited, a subsidiary of Standard Chartered Bank Ghana PLC, to provide investment advisory services to clients and promote the distribution of investment and other wealth products,” the Chief Executive and Managing Director stated.

“We also remain committed to Ghana,” she stressed, and explained that in June this year, the Group Board Chairman of Standard Chartered PLC paid a working visit to Ghana in which he reiterated the group’s commitment to Ghana as it worked with and supported clients to drive the economic recovery of the country.