StanChart grows assets to GHS 11.7bn, but profit slumps by 44.6%
Standard Chartered Bank Ghana for the period ended Q3 2022 posted net profit of GHS 213m.
The recorded net profit for Q3 2022 indicates a 44.6% (GHS 172m) decline in net profit when compared to the GHS 385m net profit recorded for same period last year.
A careful examination of the bank’s Q3 2022 Financial Statement reveals that, the slump in net profit was as a result of a significant decline in the bank’s profit before tax from GHS 580m in Q3 2021 to GHS 357m in Q3 2022.
Despite the decline in net profit, Standard Chartered Bank within the review period grew its total assets value by some GHS 2.3bn.
Total assets value of the bank at end-Q3 2022 stood at GHS 11.7bn as against the GHS 9.4bn total assets value recorded at end-Q3 2021.
Mainly accounting for the increment in the bank’s total assets value were its cash and cash equivalents and loans and advances to customers.
StanChart’s cash and cash equivalents grew to GHS 5.07bn at end-Q3 2022 from GHS 2.92bn at end-Q3 2021.
Loans and advances to customers rose to GHS 2.26bn at end-Q3 2022 from GHS 1.87bn at end-Q3 2021. Value of investment securities increased marginally to GHS 3.39bn at end-Q3 2022 from GHS 3.12bn at end-Q3 2021.
Liabilities of the bank driven mainly by deposits from customers, within the review period also witnessed significant growth rising from GHS 7.77bn to GHS 10.42bn in Q3 2021 and Q3 2022 respectively.
Regarding its Capital Adequacy Ratio (CAR), Standard Chartered’s CAR declined by 9.76 percentage points ending Q3 2022 at 16.57% from the previous year’s CAR of 26.33%.
Standard Chartered’s CAR now pegged at 16.57%, is slightly above the Bank of Ghana’s minimum CAR of 13%.
Asset quality of Standard Chartered witnessed some improvement as the bank was able to reduce its non-performing loans from 23.56% in Q3 2021 to 13.55% in Q3 2022.
Despite the significant reduction in its non-performing loans, Standard Chartered Bank’s non-performing loans is almost at par with the industry’s average non-performing loans of 14%.
