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.
According to the bank’s 2021 financial statement, 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.
Loan impairment eased from a provision of GH¢59 million in 2020 to a recovery of GH¢6 million in 2021, which was aided primarily by provision release on legacy non-performing assets.
Profit Before Tax
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 in 2021 compared to 35.3 per cent recorded in 2020. Earnings per share (EPS) was at GH¢3.23 2021 against GH¢3.54 recorded 2020. Moreover, 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 31st December, 2021 to its shareholders, Board Chairman, Dr Emmanuel Kumah, highlighted the strong performance by the bank.
“Overall, our financial results show evidence of 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.”
Dr Emmanuel Kumah
Board Chairman noted that 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.
Meanwhile, the Chairman outlined a set of interventions 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 noted that 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, said that as a Bank, it will continue to ensure returns on capital remain very strong for the shareholders.
“Our Bank maintained a highly liquid and adequately capitalised balance sheet which is well positioned to seize opportunities within the market.”
Albert Asante
For the past 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.
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