delivers strong, safe and sustainable returns to shareholders
Standard Chartered Bank Ghana
PLC’s resilient performance for 2023 has resulted in the Bank declaring an
ordinary dividend per share of GH¢2.9454 with a total amount of GH₵ 397 million
to be paid to ordinary shareholders and GH¢ 3 million to preference
shareholders resulting in a total of GH¢ 400 million.
The declaration, made during a
virtual Extraordinary General Meeting (EGM) marks a significant turning point
for Ghana's banking industry, boosting investor confidence in the financial
industry sub-sector of the economy.
The Bank of Ghana in a January
2023 directive instructed banks to suspend dividend payments. This move was
aimed at helping financial institutions weather the storm caused by the DDEP.
Ebenezer Asante Twum, the Board
Chair of Standard Chartered Bank Ghana PLC, had revealed at the bank’s annual
general meeting in July that Standard Chartered had received the green light
from the central bank to proceed with the dividend distribution.
He stated “Standard Chartered's
ability to declare dividends reflects its exceptional progress in
recapitalization efforts and overall financial health”. This dividend
declaration is a testament to Standard Chartered Bank Ghana's resilience and
strong performance in 2023. It reflects our commitment to delivering value to
our shareholders while maintaining a robust capital position.”
The EGM, which was attended members
of the Bank’s board and also had shareholders in attendance.
In a nod to technological
advancement and shareholder inclusivity, the bank provided two voting options
for shareholders: an online platform and an SMS short code system. This move
was widely praised by attendees for its convenience and accessibility.
Behind
the dividends
The dividend declaration is
underpinned by Standard Chartered's remarkable financial performance in 2023.
The bank reported a mammoth 447 percent growth in pre-tax profit, reaching
GH¢1.36 billion and effectively reversing the DDEP-induced loss of GH¢380.9
million recorded in 2022. Revenue surged to GH¢1.67 billion, up from GH¢1.22
billion in the previous year, driven primarily by a significant increase in net
interest income.
Standard Chartered's balance
sheet also demonstrated remarkable strength, with total assets climbing to
GH¢13.9 billion from GH¢10.37 billion. The bank's capital adequacy ratio stood
at an impressive 27.74 percent, well above the regulatory minimum of 10
percent, while its liquidity ratio improved to 93 percent from 63 percent in
2022.
The bank's focus on
digitalisation appears to have borne much fruit, with 95 percent of new clients
being acquired through digital channels and 90 percent of service requests
handled digitally. This push towards technology-driven banking services aligns
with global trends and positions Standard Chartered at the forefront of Ghana's
evolving financial ecosystem.
Impact
The positive news has already had
a tangible impact on the bank's stock performance. Since the beginning of the
year, Standard Chartered's shares have gained 14.5 percent, ranking it tenth on
the GSE in terms of year-to-date performance. This upward trajectory is likely
to continue as investors digest the implications of the dividend announcement
and the bank's robust financial health.
Shareholders have until September
4, 2024, to be registered in the company's books to qualify for the dividend,
which is scheduled for payment on September 30, 2024.
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