One of the country’s oldest banks, Standard Chartered Bank, has announced its intention to strive to achieve sustainable and profitable growth in the face of what it described as the short-term challenges within the economy.
“We are not discounting short-term challenges around slower growth and continued regulatory uncertainty; nevertheless, we will achieve this with a relentless focus on our priorities, efficiency and returns,” it said.
The Chief Executive of the bank, Mr Kweku Bedu-Addo, said this when the bank took its turn at the “Facts Behind the Figures” session at the Ghana Stock Exchange (GSE) in Accra on November 27 where he announced the performance of the bank in the third quarter of the year.
“There can be no question about the changing dynamics of the global economy. On the other hand, it has not been a good past few years for banking globally and to some extent Ghana. The public’s perception of what bankers do remains unfavourable, especially due to the financial crisis which began at the dawn of 2008 and also with persistent concerns about remuneration for bankers,” he said.
The Stanchart Boss said “This means we are continually faced with different business and economic challenges. This year has not been an exception”.
However, he noted that the diversity of the bank’s business, the resilience of its operating models and hard work, professionalism and commitment of its cherished staff, has enabled the bank to weather such obstacles and sustain its trajectory.
“With the year almost at its twilight, we are happy to be ending on a good note in both our Wholesale and Consumer Banking business, as well as on the issue of cost control and staff engagement.
Mr Bedu-Addo said, “We are unabashedly enthusiastic about Ghana - we have been here for 117 years and have been a key contributor to her economic growth through the years.”
Quarter 3 results
Mr Bedu-Addo said the 2013 third quarter results demonstrated a double digit growth even in the midst of tighter regulation and control and against the backdrop of strong economic headwinds.
Profit before taxation rose 80 per cent to GH¢193 million as agansit Gh¢107 the previous year, with operating income growth of 52 per cent.
Consumer Banking produced a resilient performance, delivering income of GH¢110 million, up 39 per cent.
Wholesale Banking delivered a strong performance, with income up 62 per cent to GH¢193million.
Loans to customers increased 12 per cent to GH¢1.1 billion; while deposits from non-bank customers grew 15 per cent to GH¢1.8 billion. Balance sheet footings grew by 55 per cent to GH¢3.5 billion on the back of other borrowings.
Shareholder value improved with earnings per share of GH¢1.25 versus GH¢0.69 in comparative period of last year. Return on equity is impressive at 48 per cent compared to 40 per cent in 2012.
The bank’s expenses were tightly managed; with income growing faster than costs; Cost/Income ratio down to 30 per cent from 44 per cent.
Balance sheet is in excellent shape: liquid, primarily deposit funded and strongly capitalised.
Stanchart Investor day
The Standard Chartered Group held an Investor Day event in London where it was reaffirmed that the bank was superbly placed in all its markets; in this case Ghana, and will continue to maintain its strategy; which is focusing on banking the people and companies to drive the creation of investment, trade and wealth.
“Huge opportunities remain for Ghana – areas like commodities, services and the energy sector will continue to receive our attention as they have been for the past few years.” GB