Standard Chartered Bank’s Q3 2024 Profit Reaches GHS 564 Million; NPLs Rise to 30.73%
Standard Chartered Bank (SCB) Plc experienced a substantial increase in its total asset base for the third quarter of 2024, with the bank’s asset value growing to GHS 17.1 billion.
This marks a 47.4% year-on-year increase from GHS 11.6 billion in Q3 2023, reflecting a robust GHS 5.5 billion surge in asset holdings.
The notable expansion in SCB’s assets was primarily fueled by significant growth across key asset categories. Cash and cash equivalents increased by 19.7% to GHS 5.83 billion, investment securities rose by 24.1% to GHS 7.2 billion, and loans and advances to customers saw a 7.3% uptick, reaching GHS 2.34 billion.
Liabilities for SCB also grew over the review period, recording a 24.9% increase to reach GHS 15.07 billion by the end of Q3 2024, up from GHS 12.06 billion in the same period last year.
The bank’s profit-after-tax for the quarter stood at GHS 564 million, reflecting a moderate 7.4% year-on-year rise from GHS 525 million profit-after-tax recorded in Q3 2023.
Despite the growth in assets and profitability, SCB’s Capital Adequacy Ratio (CAR) dropped significantly to 18.26% from 23.11% in the previous year, indicative of a decreasing capital to absorb potential losses.
SCB’s non-performing loans (NPLs) ratio within the review period saw a sharp increase, rising from 16.49% in Q3 2023 to 30.73% in Q3 2024, signaling a deterioration in loan asset quality and challenges with loan recovery by the bank.
The uptick in NPLs suggests an urgent need for the bank to reinforce its loan recovery strategies to mitigate the impact of rising loan defaults on its financial performance.
As SCB seeks to maintain its growth trajectory, addressing the elevated NPL ratio and increasing capital adequacy will be critical in navigating the country’s evolving economic landscape.
