StanChart posts 16.1% YoY growth in profit
Standard Chartered for the period ended June 2021, posted a net profit of Ghs 248 million.
The posted net profit compares favourably to the Ghs 208 million recorded as net profit for the period ended June 2020.
The difference in profits posted for the two second quarters represents a 16.1 percentage points year-on-year increment in the bank’s profit.
An examination of StanChart’s Q2 2021 Unaudited Financial Statement reveals that the recorded 16.1 percent YoY growth was mainly on the account of increments in the bank’s net trading and operating incomes.
Net trading and operating income for the review period amounted to Ghs 153 million and Ghs 548 million from a previous figure of Ghs 110 million and Ghs 470 million respectively.
The recorded profit per the bank’s financial statement translates into some Ghs 1.84 pesewas earnings per share – dividend payments – for its shareholders.
Value of the bank’s assets for the period under review also recorded a 10 percentage points growth YoY ending Q2 2021 with a total value of Ghs 9.3 billion.
Same period last year, the bank’s total assets value stood at Ghs 8.37 billion marking a Ghs 931 million increase in the bank’s assets.
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The witnessed growth in the bank’s assets value was influenced by its cash and cash equivalents and non-pledged trading assets.
Cash and cash equivalents and non-pledged trading assets grew from Ghs 2.2 billion and Ghs 96 million to Ghs 2.8 billion and Ghs 619 million in Q2 2020 to Q2 2021 respectively.
StanChart’s liabilities for the period also grew from Ghs 6.9 billion to Ghs 7.7 billion being mainly driven by deposits from customers and other banks.
With regards to loan asset quality, the bank witnessed a marginal strengthening of its loan asset quality as its non-performing loan portfolio (NPL) decreased marginally from 24.19 percent to 23.16 percent in the review period.
The bank’s Capital Adequacy Ratio (CAR) however, witnessed a decline of 6.39 percentage points from 30.58 percent in Q2 2020 to 24.19 percent in Q2 2021.
Despite the decline, StanChart’s CAR still remains well above the 13 percent CAR regulatory requirement of the Central Bank and the banking industry’s average of 20 percent CAR.
Examine details of the financial statement below:
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