Business Post Contributor
By Ashemiriogwa Emmanuel
The first six months of this year was positive for Standard Chartered Plc as the multinational banking and financial services company recorded its highest half-yearly operating profit over the last five years.
In the financial statements released by the group, profit before tax increased by 37 per cent year-on-year (YoY), which was supported by improved loan impairments, strong underlying business momentum and significant improvement across the bank’s strategic priorities.
The bank reported tremendous performance in Africa and the Middle East region as underlying income grew by 8 per cent and reflected on the growth in Wealth Management Income and healthy pipeline conversions.
Amid the impact of rate cuts and currency devaluation, the bank’s income remained flat YoY and saw a one per cent increase on a constant currency basis.
According to the report, a total of $476 million was recorded on Healthy Operating Profit of USD as against the previous year’s $91 million. This was mainly achieved by reduced credit impairments, wealth growth, productivity actions, and a strong pipeline.
Another major highlight that contributed to the bank’s impressive performance was how well the company was able to use investment funds to generate earnings growth as there was a significant improvement in the region’s Return on Tangible Equity (ROTE) ratio.
The financial results further showed a 6 per cent income growth in Africa on a constant currency basis which was supported by the digital banking momentum in Consumer, Private, and Business Banking (CPBB) segment.
Commenting on the results, the Regional CEO, Africa, and the Middle East, Mr Sunil Kaushal expressed delight over the performance, pointing out that it was the best ever half-year outcome in over five years.
He also disclosed the bank’s plan to promote trade, investment, and capital flows in support of the as they penetrate their network into the Kingdom of Saudi Arabia.
According to him, “I’m extremely proud of our best ever first-half performance in over five years. This is the result of all the hard work the team has put in over the years and the execution of some tough decisions we made to drive efficiencies and reduce risk.
“This has happened during a period when the backdrop while improving remains uncertain and challenging and is a true testament to the resilience of our underlying business.
“We have remained focused on clients and people and have made very good progress on our priorities. We are excited about the recent expansion of our network into the Kingdom of Saudi Arabia. We will leverage our presence in the Kingdom to promote trade, investment, and capital flows in support of the Saudi Vision 2030.”
Mr Kaushal further revealed that the havoc wrecked by the COVID-19 pandemic was a catalyst for growth as it increased their customer base by over half a million across the nine key African markets.
“The digital banking platforms we have launched across nine key African markets – Cote d’Ivoire, Uganda, Tanzania, Ghana, Kenya, Botswana, Zambia, Zimbabwe, and Nigeria – have transformed the way we do business and connect with our clients.
“The pandemic, rather than becoming a stumbling block, has accelerated our growth by increasing our customer base by over half a million, which is 50 per cent higher than our legacy base.
“As we move forward, the region is focused on executing swiftly against the strategy to drive growth and we are determined to support our clients achieve prosperity whilst being the most responsible and sustainable bank,” he said.
