Standard Chartered Bank records GH¢1.07 billion revenue in 2021

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 on inflation on general operating costs.

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.

 

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Source: Ghana Business