Business News of Tue, 12 Jun 20180
StanChart grows income; poised to raise new capital
Standard Chartered Bank Ghana Limited made impressive performance in the 2017 financial year, posting profit before tax of GH¢422.3 million from GH¢345.5 million in 2017, representing a 22% jump, while its operating income rose 9% from GH¢620.9 million in 2016 to 676.8 million.
The bank, in spite of a challenging year, made an income surplus of GH¢302 million and increased its capital adequacy ratio from 21% to 26%.
Its share price went up by 27% from GH¢1.92 to GH¢2.44.
Commenting on the results at the bank’s 48th Annual General Meeting (AGM) in Accra last Thursday, outgoing Chairman of the Board of Directors, Mr Ishmael Yamson said the bank was in a secured position to drive strong revenue growth.
"We made significant progress in 2017 posting strong financial performance, a testament to the disciplined execution of the bank's strategy of maintaining a strong balance sheet, improving profitability and driving operational efficiencies,” Mr Yamson stated.
Management, he indicated, had placed business growth on an upward trajectory to deliver accretive returns for the benefit of its clients, customers, shareholders, employees and communities.
Mr Yamson noted that in spite of structural challenges facing banks in the country, which is a reflection of the persisting economic challenges, the Board of Directors of the bank was confident of the bank’s ability to seize the right opportunities for growth while effectively responding to the challenges of that could undermine its performance.
Chief Executive Officer of the bank, Mrs Mansa Nettey pledged renewed commitment to efforts and initiatives that would “help us aggressively drive top line growth”, adding “we will focus on being the right partner to government, corporate and individuals by delivering on our ratings advisory, capital markets and e-solution capabilities”.
Bank ready to meet minimum capital requirement
Shareholders of the bank unanimously approved moves by the bank’s board to move its 2017 income surplus of GH¢302 million to its stated capital in order to meet the new minimum capital requirement.
No dividends for shareholders
The bank announced that shareholders of the bank will not be enjoying dividends on their shares for the 2017 earnings due to the new measures in meeting the capital requirement.
Management promised that every shareholder with six existing shares will be given additional share even though they will not attract dividend for the financial year 2017.