Standard Chartered Bank Ghana declares GH¢400m dividend

Standard Chartered Bank Ghana PLC has announced a significant dividend for
its shareholders, following a resilient financial performance in 2023.

The bank declared an ordinary dividend per share of GH¢2.9454, amounting to
GH₵397 million to be distributed among ordinary shareholders, and an additional
GH¢3 million to preference shareholders. This brings the total dividend payment
to GH¢400 million.

The dividend declaration, which was made during a virtual Extraordinary
General Meeting (EGM), marks a pivotal moment for Ghana’s banking sector,
bolstering investor confidence in the financial industry. This comes after a
directive from the Bank of Ghana in January 2023, which had instructed banks to
suspend dividend payments in order to help financial institutions manage the
challenges posed by the Domestic Debt Exchange Programme (DDEP).

At the bank’s annual general meeting in July, Ebenezer Asante Twum, the
Board Chair of Standard Chartered Bank Ghana PLC, announced that the bank had
received approval from the central bank to proceed with the dividend
distribution. He emphasized that “Standard Chartered’s ability to declare
dividends reflects its exceptional progress in recapitalization efforts and overall
financial health.” This move underscores the bank’s resilience and strong
performance in 2023, demonstrating its commitment to delivering value to
shareholders while maintaining a robust capital position.

The EGM was attended by members of the bank’s board and shareholders, with
the bank introducing two voting options for shareholders: an online platform
and an SMS short code system, which were praised for their convenience and
accessibility.

Standard Chartered’s dividend declaration is underpinned by its impressive
financial performance in 2023. The bank reported a remarkable 447 percent
growth in pre-tax profit, reaching GH¢1.36 billion, effectively reversing the
GH¢380.9 million loss recorded in 2022 due to the DDEP. Revenue surged to
GH¢1.67 billion, up from GH¢1.22 billion the previous year, driven primarily by
a substantial increase in net interest income.

The bank’s balance sheet also showed significant strength, with total assets
rising to GH¢13.9 billion from GH¢10.37 billion. The capital adequacy ratio
stood at an impressive 27.74 percent, well above the regulatory minimum of 10
percent, while the liquidity ratio improved to 93 percent from 63 percent in
2022.

Standard Chartered’s focus on digitalization has also yielded positive
results, with 95 percent of new clients being acquired through digital channels
and 90 percent of service requests handled digitally. This shift towards
technology-driven banking aligns with global trends and positions the bank as a
leader in Ghana’s evolving financial ecosystem.

The positive financial results have already had a noticeable impact on the
bank’s stock performance. Since the beginning of the year, Standard Chartered’s
shares have gained 14.5 percent, making it the tenth best performer on the
Ghana Stock Exchange in terms of year-to-date performance. This upward trend is
expected to continue as investors absorb the implications of the dividend
announcement and the bank’s strong financial health.