Apr 27, 2011, 1:48 PM
At Standard Chartered's 33rd Annual General Meeting held this week at the Kairaba Beach Hotel, it was announced that the Bank has recorded another year of outstanding performance.
The Bank is said to have demonstrated that they have the right strategy, the right culture and the right geographical footprint to deliver consistent and sustained value for its shareholders.
The bank has delivered outstanding results for the year ended 31 December 2010. Operating income rose to 28 per cent to D 415.5 million with operating profit increasing to 118 per cent to D167.2 million. Cost to income ratio improved from 76 per cent in 2009 to 60 per cent in 2010. Return on equity rose to 39 per cent in 2010, compared to 18 per cent in 2009. Normalised earnings per share (EPS) increased from 66bututs to 160bututs, reflecting the growth in the bank’s business operations.
Standard Chartered's capital position is strong and this was further boosted to D150 million during the year in compliance with the Central Bank of The Gambia's directive. The bank's capital adequacy ratio at the end of 2010 was at 19.3 per cent compared to the regulatory minimum of 8 per cent.
The bank continues to maintain a well capitalised balance sheet, and a healthy liability mix with current and savings account balances comprising over 90 per cent of its deposit base; the bank’s loan and advances portfolio is healthy with non-performing loans making 3 per cent of the portfolio.
The Executive Director for Finance Richard Ahulu stated: "The operating income grew by D92 million or 28 per cent to D416 million. Consumer Banking continued to make good progress in moving towards a more customer focused business. Consumer Banking’s income was 25% higher at D194 million. Consumer Banking continues to be impacted by low margins but balance sheet growth coupled with good performance in SME has led to positive income growth.
"Wholesale Banking continued to strengthen relationships with existing clients, resulting in the growth of income by 31 per cent to D222 million. This outstanding performance for 2010 reaffirms our commitment to be 'here for progress, here for good'," he said.
"Balance sheet footings grew by D336 million to D2.9 billion, representing 13 per cent year on year growth. Balance sheet growth was largely driven by an increase in balances due from other banks, investments in treasury bills and bonds, which were on the back of significant growth in customer deposits."
Mr Ahulu continued: "The Bank has continued to see good growth in deposits in our two businesses during 2010. Our customer deposits increased by D255 million or 12 per cent to D2.4 billion between 2009 and 2010 confirming that as an international Bank, we do understand our local market."
He concluded by saying: "We continue to be cautious in the underwriting of loans and advances to customers. The Wholesale Banking business saw an increase in its loans and advances portfolio, but this was offset by a decline in the Consumer Banking loan and advances portfolio, resulting in a marginal decline of 2 per cent in the Bank’s loan and advances portfolio."