StanChart promises to pursue impaired loans

Mansa Nettey, CEO, Standard Chartered Bank Ghana Limited

Following an increase in the impairment of loans by about 961 percent in the 2018 financial year, the Standard Chartered Bank Ghana has assured that it will pursue these loans although they have been written off.

The impairment increased from GHc 9.5 million in prior year to GHc 100.8 million in 2018, mainly on the back of expected credit loss (ECL) emanating from the implementation of International Financial Reporting Standards 9 (IFRS 9).

In an interview, the CEO of Bank, Mansa Nettey said, “the fact that the Bank of Ghana (BoG) has asked that we write the loans off, it doesn’t necessarily mean that we would not pursue those loans.”

She insisted that it is incumbent on the Bank to pursue those loans.

Nettey also noted that the Bank supports the call for specialized courts for the purpose of dealing with financial case.

She further noted that the bank would focus on delivering its strategy through disciplined execution and driving operational efficiency and productivity while positioning business segments for growth.

Despite growth of the Bank is being slower than expected and impacting short-term profits, Nettey said, ‘we have put in place actions to put the business back on an upward growth trajectory.’

“We will continue to maintain the right financial framework, supported by a strong balance sheet, to generate strong returns while pursuing further recovery and restructuring of impaired assets to ensure value conservation and creation,” she said.

The Bank’s outlook for 2019 remain positive, however there are some perceived headwinds and challenges in the global Macro-economy, which could impact on local economy.

“We believe that with our refreshed strategic priorities, we will be able to take advantage of the opportunities the market presents, to drive income growth and deliver on our objectives,” she stated.