Shareholders of Standard Chartered bank have voted to approve a dividend per share of 1 cedi 4 pesewas for 2018.
This represents 7 percent drop compared to the 1 cedi 12 pesewas dividend per share approved in 2016.
The total dividends for last year amounted to 140 million cedis.
The Board Chairman of Standard Chartered bank, Dr. Emmanuel Oteng Kumah assured that the board will continue to work to return profits to shareholders.
“In 2018, the Bank increased its paid up capital to 400 million cedis to meet the Central bank’s revised directive of minimum paid up capital for banks. The bank’s capital adequacy ratio for the period remains strong at 28.6 percent which is above the statutory limit of 13 percent,” he said at the bank’s Annual General Meeting in Accra on Thursday, June 6, 2019.
Dr. Kumah added, “Given our commitment to improve value to you our shareholders, for your support over the years, the Board therefore recommends a dividend per share of GH¢1.04 per ordinary share for 2018.”
Meanwhile the profit of Standard Chartered bank recorded a drop of 25 percent between 2017 and 2018.
The figure declined from 283.6 to 210.7 million cedis within the one year period.
The CEO of Standard Chartered bank, Mansa Nettey attributed to the impact of prevailing economic conditions.
She however was confident a proposed economic turnaround should address the issue by the end of this year.
“We began 2018 strongly with our performance indicators trending positively. However, challenges in the economy and the banking sector impacted our performances in the second half of the year especially in our commercial banking business.”
Also, net impairment charge was 100.8 million cedis in 2018 compared to the prior year of 9.5 million cedis.
This the bank attributed to its more stringent implementation of IFRS 9 related adjustments and the bank’s prudent internal risk guidelines.
A five year analysis of Standard Chartered Bank’s financial performance shows that the highest provision was made in 2015.
For that year, the bank’s provision for loan impairment reached 212.8 million cedis.
In response to a question by Citi Business News on which sector contributed the highest, the CEO of Standard Chartered Bank, Mansa Nettey said the manufacturing sector accounted for the highest figure of the impaired loans.