- StanChart NPL Ratio Rises to 23.45% as Profit Hits GH¢320 million
Standard Chartered Bank Ghana Plc recorded a 10.32% increase in consolidated profit to GH¢320.00 million for the six months ended June 2026, even as its gross non-performing loan ratio deteriorated sharply and core revenue came under pressure.
The bank’s gross NPL ratio increased to 23.45% from 18.17% a year earlier, representing a deterioration of 5.28 percentage points, according to its unaudited half-year financial statements. However, the NPL ratio excluding the loss category improved to 0.84% from 2.79%, indicating that much of the deterioration in the headline ratio was concentrated among loans already classified in the most impaired category.
Despite the asset-quality pressure, consolidated profit after tax increased from GH¢290.06 million in the corresponding period of 2025 to GH¢320.00 million.
The improvement in bottom-line earnings came despite a 14.31% decline in revenue to GH¢806.11 million, from GH¢940.77 million previously.
Profit before tax was less resilient, declining 5.16% to GH¢432.15 million from GH¢455.67 million.
A significant factor cushioning the earnings decline was a GH¢56.74 million impairment reversal on financial assets. Standard Chartered had recorded a GH¢63.23 million impairment charge during the first half of 2025, producing an almost GH¢120.00 million year-on-year swing in credit impairment.
Tax and levy expenses also declined substantially to GH¢112.15 million from GH¢165.62 million, supporting the increase in profit after tax despite weaker pre-tax earnings.
The underlying income numbers nevertheless show pressure across significant parts of Standard Chartered’s traditional banking business.
Consolidated net interest income declined 27.06% to GH¢387.69 million from GH¢531.51 million, after interest income fell to GH¢445.28 million from GH¢593.92 million.
Net fee and commission income also declined 13.92% to GH¢127.23 million from GH¢147.81 million.
Trading income provided some offset, increasing 11.37% to GH¢291.18 million, compared with GH¢261.45 million in the first six months of 2025.
The bank simultaneously expanded its balance sheet.
Consolidated total assets rose 15.48% to GH¢16.61 billion from GH¢14.39 billion, while loans and advances to customers increased 17.01% to GH¢2.31 billion from GH¢1.98 billion.
Customer deposits expanded 7.64% to GH¢11.63 billion, compared with GH¢10.81 billion a year earlier.
Amounts due from other banks increased sharply to GH¢3.90 billion from GH¢1.13 billion, while investment securities declined to GH¢3.40 billion from GH¢4.05 billion.
Standard Chartered also strengthened its capital position during the period.
Its capital adequacy ratio increased to 32.04% from 30.75%, while Common Equity Tier 1 improved to 29.93% from 27.64%. Tier 1 capital increased to 30.04% from 27.75%.
The bank’s liquid ratio strengthened to 98.82% from 86.39%, providing another substantial buffer despite the deterioration in the headline NPL ratio.
Shareholders’ funds increased 26.26% to GH¢3.13 billion from GH¢2.48 billion. Net asset value per share consequently increased to GH¢23.17 from GH¢18.33.
Cash generation, however, weakened substantially.
The group recorded net cash used in operating activities of GH¢4.32 billion, compared with GH¢1.22 billion generated during the corresponding period of 2025.
One of the largest movements was a GH¢2.33 billion increase in mandatory reserve deposits with the Bank of Ghana. Loans and advances to customers also absorbed GH¢818.20 million in cash during the period.
Cash and cash equivalents for cash-flow purposes consequently declined to GH¢2.22 billion at the end of June from GH¢6.11 billion at the start of the year. The bank noted that this figure excludes amounts held as mandatory reserves.
Standard Chartered’s half-year results therefore present a contrasting picture.
Profitability strengthened at the bottom line, capital and liquidity buffers remained robust and lending expanded. But revenue, net interest income and fee income weakened, while the gross NPL ratio moved materially higher.
The GH¢56.74 million impairment reversal and significantly lower tax charge were therefore important contributors to the GH¢320.00 million profit performance.
The second half of the year will test whether Standard Chartered can translate its expanding loan book and strong capital position into renewed growth in recurring banking income while containing the asset-quality pressures reflected in the 23.45% NPL ratio.
