Standard Chartered pays 20% of total income as dividend

Standard Chartered Bank has paid a total of GH¢140million, representing 20 percent of total income for 2018, as dividend to shareholders.

The bank recorded an operating profit of GH¢325.6million for 2018, which underscored its ability to rise above challenges with good corporate governance, strong risk management and focus on satisfying customers.

The bank’s underlying operating income increased by 5 percent year-on-year to GH¢712.9million from GH¢676.8million in 2017, while operating expenses increased by 17 percent from GH¢244.9million in 2017 to GH¢286.3million in 2018.

Net customer loans and advances decreased by 6 percent from GH¢1.38billion to GH¢1.3billion. This is attributed to loan write-offs and de-risking of its loan portfolio. With earnings per share standing at GH¢1.54, the bank currently has a Capital Adequacy Ratio of 28.59 percent, which is well above the statutory limit.

The bank’s Board Chairman, Dr. Emmanuel Oteng-Kumah said: “Standard Chartered Bank Ghana Limited is a great organisation with a rich heritage and legacy spanning over 120 years in Ghana. Our focus is to continue harnessing the bank’s potential to deliver value for our shareholders and clients, and drive the economic development of Ghana”.

According to him, management of the bank will continue to navigate the industry’s headwinds going forward: “It is encouraging to see an increase in balance sheet momentum and income. Management is investing to enhance controls and improve productivity to make the bank safer and simpler to do business with. Banking remains a risk-based industry, and we will remain prudent in our management and pricing of risk. Although competition remains intense, the bank aspires to be the market leader in every sense”.

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Mr. Kumah assured that: “We are undoubtedly poised and confident that we will deliver strong performances in the years ahead. Our actions will improve the client experience and create a differentiated proposition for all stakeholders.

Chief Executive of the bank, Mansa Nettey, noted that the bank’s focus is to maintain the right framework supported by a strong balance sheet to generate significant returns, while pursuing further recovery and restructuring of impaired assets.

“Our focus will be to concentrate on delivering our strategy through disciplined execution and driving operational efficiency and productivity. Despite our growth being slower than expected and impacting our short-term profits, we have put in place actions to put the business back on an upward-growth trajectory.

“We will continue to maintain the right financial framework karma supported by a strong balance sheet karma to generate strong Returns while pursuing further recovery and restructuring of impaired assets to ensure value conservation and creation,” she said.

Chief Financial Officer, Kweku Nimfah-Essuman commented: “We will focus on delivering sustainably higher returns for our clients and shareholders on the back of a stronger and more resilient balance sheet”.

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