Mansa Nettey, CEO of Standard Chartered Bank
Shareholders of Standard Chartered Bank yesterday endorsed a proposal by the bank’s board to use its 2017 income surplus of GH¢302 million to shore up its stated capital and attain the Central Bank’s new minimum capital requirement of GH¢400 million.
The shareholders made the unanimous decision at the bank’s 48th Annual General Meeting (AGM) at the National Theatre in Accra.
By the foregoing decision, the shareholders would not be entitled to any dividends on their investment in the bank’s operations for 2017, save a bonus of one share for every six shares held.
Outgoing chairman of the bank’s board, Ishmael Evans Yamson, who addressed the shareholders, said the bank made significant progress in 2017.
Operating income increased by nine percent to GH¢676.8 million from GH¢620.9 million.
Operating expense was up by 26 percent to GH¢244.9 million compared to previous year of GH¢194.1 million.
Also, he said impairment charge was 88 percent better at GH¢9.5 million to date while the cumulative effect of the afore-mentioned resulted in profit-before-tax of GH¢422.3 million, representing 22 percent growth over the prior year’s.
The bank recorded average return on equity of 32 percent compared to the previous year’s of 34 percent with earnings per share increasing by 27 percent from GH¢1.92 to GH¢2.44.
Mansa Nettey, Chief Executive of the bank, expressed appreciation to Mr Yamson for his leadership, deep knowledge and rich insights which have had a transformative impact on the bank.
“Indeed, it has been an honour and privilege to work with him. We wish him all the best in his future endeavours.”
Kweku Nimfah-Essuman, Chief Financial Officer, noted that the bank’s Capital Adequacy Ratio (CAR) was above the statutory limit of 13 percent (10 percent + 3 percent buffer), adding that customer loans and advances grew 10 percent in the year while deposits grew 7 percent.
On non-performing loans, he said the bank’s NPLs were GH¢740 million, which was lower than 2016 position of GH¢824 million while gross non-performing loans ratio was 35 percent compared to the preceding year’s of 45 percent.
Yvonne Gyebi, Head, Commercial Banking, stated that in 2017 the bank rolled out mobile money payroll payment solutions for clients and collaborated with its employee banking partners “to deliver a full suite of banking solutions to the management and staff of our clients in line with our one-bank agenda.”