Standard Chartered Reports GHS 176.1 Million Q1 Profit Amid Decline in Interest Income
Standard Chartered Bank Ghana PLC has posted a 21.6% rise in net profit for the first quarter of 2025, defying a sharp contraction in interest income as the lender leveraged higher fee-based income and robust trading gains to bolster bottom-line growth.
The bank reported a consolidated profit of GH¢176.1 million for the three months ended March 31, 2025, compared with the GH¢188.7 million in Q1 2024. Despite a 38.8% year-on-year fall in interest income to GH¢275.6 million, the bank benefited from stronger fee and commission revenue, which surged 59.2% to GH¢96.3 million, and a 53% jump in net trading income to GH¢77.8 million.
Operating income for the group stood at GH¢413.6 million down 15% from the same period last year, and impairments on financial assets fell sharply to GH¢3.8 million from GH¢36 million.
Standard Chartered’s cost-to-income ratio rose marginally as operating expenses climbed 35% to GH¢216.4 million, driven by higher personnel and administrative costs. Nevertheless, profit before tax stood at GH¢193.3 million, representing a 33.6% drop compared to GH¢291 million in Q1 2024.
The bank’s bottom line was further supported by a GH¢55.1 million fair value gain on its holdings of financial instruments classified as Fair Value through Other Comprehensive Income (FVOCI), in contrast to a GH¢128.5 million loss recorded in the corresponding period last year. Total comprehensive income thus improved to GH¢231.1 million from GH¢60.3 million.
The bank’s asset base expanded slightly to GH¢15.59 billion from GH¢15.32 billion a year earlier. Notably, customer deposits declined by 8.4% to GH¢11.17 billion, while loans and advances to customers rose 13% to GH¢2.32 billion, signalling a cautiously optimistic credit policy.
Perhaps the most impressive outcome was in credit risk. The gross non-performing loan (NPL) ratio fell significantly to 24.17% from 30.05% in Q1 2024. More importantly, when excluding the loss category, the NPL ratio dropped sharply to just 0.76% from 15.62%. This suggests that problematic exposures have either been written off, restructured, or adequately provisioned for, significantly de-risking the loan book.
Capital adequacy remains robust with a total CAR of 25.5% and Tier 1 capital at 24.1%, well above regulatory thresholds. The bank’s liquidity ratio also remained high at 93.4%, giving it ample headroom to meet short-term obligations and navigate further market volatility.
Earnings per share dipped to GH¢1.31 from GH¢1.40 in Q1 2024. However, the bank’s net asset value per share rose to GH¢16.88 from GH¢14.70, reflecting the continued accumulation of retained earnings and capital reserves.
NorvanReports Outlook
Looking ahead, Standard Chartered Ghana appears well-positioned to weather ongoing macroeconomic pressures. Its strong capital buffer, improving credit quality, and diversified income streams suggest that while earnings may face pressure from narrowing margins, the fundamentals remain sound.
Standard Chartered Bank Ghana Plc — Financial Highlights (Q1 2025 vs Q1 2024 with YoY Change)
| Metric | Q1 2025 | Q1 2024 | % Change (YoY) |
| Interest Income (GH¢ ‘000) | 275,647 | 450,158 | -38.77% |
| Interest Expense (GH¢ ‘000) | (33,624) | (65,994) | -49.05% |
| Net Interest Income (GH¢ ‘000) | 242,023 | 384,164 | -37.00% |
| Net Fee and Commission Income (GH¢ ‘000) | 80,839 | 50,675 | +59.52% |
| Net Trading Income (GH¢ ‘000) | 77,840 | 50,880 | +52.99% |
| Operating Income (GH¢ ‘000) | 413,603 | 487,286 | -15.11% |
| Net Impairment Loss on Financial Assets (GH¢ ‘000) | (3,846) | (36,041) | +89.33% |
| Profit Before Tax (GH¢ ‘000) | 193,324 | 291,002 | -33.56% |
| Profit After Tax (GH¢ ‘000) | 176,061 | 188,743 | -6.71% |
| Total Comprehensive Income (GH¢ ‘000) | 231,146 | 60,271 | +283.58% |
| Earnings Per Share (GH¢) | 1.31 | 1.40 | -6.43% |
| Net Asset Value Per Share (GH¢) | 16.88 | 14.70 | +14.97% |
| Total Assets (GH¢ ‘000) | 15,588,858 | 15,321,404 | +1.75% |
| Customer Deposits (GH¢ ‘000) | 11,167,592 | 12,188,281 | -8.37% |
| Loans & Advances to Customers (GH¢ ‘000) | 2,316,786 | 2,050,688 | +12.99% |
| Investment Securities (GH¢ ‘000) | 3,475,403 | 6,528,624 | -46.78% |
| Capital Adequacy Ratio (%) | 25.53% | 27.78% | -8.09% |
| Non-Performing Loan Ratio (Gross) (%) | 24.17% | 30.05% | -19.57% |
| NPL Ratio excl. Loss Category (%) | 0.76% | 15.62% | -95.13% |
