…Income surplus standing for 2017 to be used
The Board Chairman of the Standard Chartered Bank Ghana, Mr Ishmael Evans Yamson has disclosed the bank is poised to meet the new minimum paid up capital requirement by using its income surplus standing at the end of 2017.
Shareholders of the bank on Thursday, June 7 voted to transfer GHS302 million from the company’s income surplus to its stated capital.
‘’The Board has looked at various options to raise this new capital and has decided that the best option is to use its income surplus standing in the books as at the end of 2017.
‘’Consequently, the board shall not recommend the payment of dividends on Ordinary shares in 2017,’’ the Board Chairman said.
The move, is to help the bank meet the GHS400 million minimum capital requirement December deadline set by the Central Bank.
He made this known at the bank’s 48th Annual General Meeting in Accra.
According to him, the banks financial report for 2017 saw its operating income increase by 9 percent to GHS676.8 million from GHS620.9 million.
Operating expense was up by 26 percent to GHS244.9 million compared to prior year of GHS194.1 million with its impairment charge rising to 88 percent, better at GHS9.5 million year to date.
The cumulative effect of the above, resulted in profit before tax of GHS422.3 million, which represented a 22 percent growth over prior year.
The banks average return on equity, was at 32 percent compared to prior year of 34 percent, making its earnings per share see an increase by 27 percent from GHS1.92 to GHS2.44.
The Board Chairman said the financial progress of the bank, is as a result of its discipline and execution strategy of maintaining a strong balance sheet.
Mansa Nettey, Chief Executive of the Standard Chartered Bank Ghana said the banks outlook for 2018 is to remain committed to the efforts and initiatives that would help the bank aggressively drive top line growth.
‘’We will also deepen our holdings across the value chain in strategic industries of manufacturing, infrastructure, energy, oil and gas while driving an untapped eco-system banking potential,’’ she added.
Kweku Nimfah-Essuman, Chief Financial Officer of the bank assured shareholders and regulators that it will meet the new the minimum capital requirement of GHS400 million by the close of December this year.
The bank also used the occasion to announce the retirement of its Board Chairman, Mr Ishmeal Evans Yamson, effective June 30, 2018 after his immense contribution to the bank over the past 13 years.
He was applauded for his unparalleled leadership and dedicated service to the significant growth of the bank.
By Mawuli Y. Ahorlumegah