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.
Explore the world of impactful news with CitiNewsroom on WhatsApp!
Click on the link to join the Citi Newsroom channel for curated, meaningful stories tailored just for YOU: https://whatsapp.com/channel/0029VaCYzPRAYlUPudDDe53x
No spam, just the stories that truly matter! #StayInformed #CitiNewsroom #CNRDigital
