Standard Chartered strengthens CAR; grows assets value to GHS 10.1bn
Standard Chartered Bank Ghana for the review year of 2021 grew its Capital Adequacy Ratio (CAR) by 8.52 percentage points.
In its Audited Financial Statement for 2021, Standard Chartered Bank posted a CAR of 33.42% from the previous year’s – 2020 – CAR of 24.90%.
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.
With a CAR three times above the Central Bank’s 10% CAR minimum regulatory requirement, Standard Chartered, is more than able to absorb all bad or non-performing loans on its loan books.
The bank’s liquidity ratio for the review period also increased from 65.69% in 2020 to 71.05% in 2021, indicating the bank’s increased ability to meet its obligations to customers when they fall due.
Total assets value per the bank’s 2021 Financial Statement, grew by more than GHS 2bn on year-on-year basis ending 2021 with total assets value of GHS 10.1bn from the total assets value of GHS 8.03bn in 2020.
Read: Stock market close at 2,730 points; returns -2.10% to traders
Major components of total assets value such as cash and cash equivalents, loans and advances to customers and investment securities accounted for the growth in the bank’s assets value.
Cash and cash equivalents for the review period rose to GHS 3.2bn from GHS 2.7bn in 2021 and 2020 respectively.
Loans and advances to customers and investment securities also for the review period grew from GHS 1.6bn to GHS 1.8bn and GHS 2.4bn to GHS 3.7bn in 2020 and 2021 respectively.
A perusal of the bank’s financial statement for 2021 revealed a posted net profit of GHS 436m, a slight decrease from the GHS 468m net profit posted in 2020.
Loan asset quality of Standard Chartered Bank for the review period deteriorated marginally ending the year with gross non-performing loans ratio of 23.59% – higher than the industry’s average non-performing loans of 15.2%.
Peruse details of 2021 Financial Statement below:
Gh Scb Ghana Full Year Financial Statement for Year 2021 by Fuaad Dodoo on Scribd
