StanChart posts Ghs 385m profit for Q3 2021; increases CAR to 26%
Standard Chartered Bank Ghana, for the third quarter of 2021 posted a net profit of Ghs 385 million.
The recorded profit for Q3 2021 represents a 12.07 percentage points (Ghs 41 million) increment when compared to the profit of Ghs 344 million recorded for Q3 2020.
The main drivers’ of the bank’s Ghs 41 million increase in profit were its net trading income which grew from Ghs 174 million in Q3 2020 to Ghs 233 million in Q3 2020, as well as operating income which also went up from Ghs 769 million to Ghs 812 million in Q3 2020 to Q3 2021.
Equity holders of Standard Chartered with respect to the posted profit for Q3 2020, stand to enjoy some Ghs 2.85 pesewas as earnings for each share or equity held.
Total assets value of the bank for the review period increased by some Ghs 1.04 billion. StanChart ended Q3 2021 with a total assets value of Ghs 9.4 billion from last year’s Ghs 8.3 billion.
Accounting for the bank’s increase in assets value was investment securities held by the bank which is in the form of government short-term dated debt instruments.
The bank’s liabilities also witnessed an increment of some Ghs 749 million for the review period.
A perusal of StanChart’s Q3 2021 Financial Statement reveals that deposits from customers mainly accounted for the increment in liabilities with borrowings made by the bank playing a minor role in the rise of its liabilities.
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Deposits from customers surged to Ghs 6.5 billion in Q3 2020 from Ghs 5.8 billion in Q3 2020.
Standard Chartered double the Bank of Ghana’s (BoG) Capital Adequacy Ratio (CAR) of 13 percent as it recorded a CAR of 26 percent in Q3 2021.
The bank grew its CAR from 17.96 percent in Q3 2020.
The capital adequacy ratio (CAR) is a measurement of a bank’s available capital expressed as a percentage of a bank’s risk-weighted assets and liabilities.
Capital Adequacy Ratios mandate that a certain amount of the deposits be kept aside whenever a loan is being made. These deposits are kept aside as provisions to cover up the losses in case the loan goes bad.
Peruse StanChart’s Q3 2021 Financial Statement below:
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