StanChart Ghana earnings up 69.6% to ¢478m

One of Ghana’s first quartile banks, Standard Chartered Bank recorded a remarkable 69.6% growth in year-on-year earnings to GH¢478 million in 2020, despite the impact of covid-19 on its operations, its 2020 Audited Financial Statement has revealed.

The bank’s growth was fuelled by outstanding growth in net trading income, which jumped by 46.7% to GH¢246 million, whilst loan loss was also reduced to about GH¢59 million.

It however recorded about GH¢139.4 million in net fees and commissions at the end of 2020, about ¢36 million more than 2019.

Stanchart is one of the most efficient banks in the country today as cost-to-income ratio-that is the measurement of costs in relation to earnings-was 33% during the period, far below industry average.

Shareholders of the bank will be smiling as earnings per share hit GH¢3.54 as against ¢2.08 a year ago.

In terms of the balance sheet, Stanchart balance sheet size was strong, hitting GH¢14.5 billion.

Customers’ deposits was virtually unchanged at GH¢5.7 billion at the end of December 2020. It stood at GH¢5.4 billion the same period last year.

The stated capital of the bank was unchanged at GH¢400 million though it recorded GH¢440 million income surplus in December 2020.

For the stability of the bank, Stanchart, registered a Capital Adequacy Ratio-a measurement of a bank’s available capital to its risk weighted assets – of 17.96% and an NPL of 7.21%.

     December 2020       December 2019

Profit                                  478m                         281m

Customer deposits        5.74bn                      5.41bn

Liquid ratio                       65.6%                        75.0%