StanChart moves to meet BoG’s minimum capital requirement

Shareholders of Standard Chartered Bank unanimously approved moves by the bank’s board to move its 2017 income surplus of GH¢302 million to its stated capital in order to meet the new minimum capital requirement.

This was after the board made the proposal at the bank’s Annual General Meeting in Accra.

Additionally, shareholders of the bank will not be enjoying dividends on their shares for the 2017 earnings due to the new measures in meeting the capital requirement.

Announcing the moves, outgoing Chairman of the Board of Directors, Ishmael Yamson promised that every shareholder with six existing shares will be giving additional share even though they will not attract dividend for the financial year 2017.

The bank also increased its capital adequacy ratio from 21% to 26%. There was an increase in share price by 27 per cent as well as operating income by nine per cent and a profit before tax of 22 Percent.

Mr Yamson said, "We made significant progress in 2017 posting strong financial performance, a testament to the disciplined execution of the bank's strategy of maintaining a strong balance sheet, improving profitability and driving operational efficiencies.

Underlying profit before tax however increased by 22 Percent to Gh¢422.3 million. Earnings per share increased by 27 per cent from Gh¢1.92 to Gh¢ 2.44. We are now in a position to drive revenue growth,” he added.

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