Standard Chartered Bank Ghana Limited will not play dividend to ordinary shareholders for the 2017 financial year, as it plans to move funds in its income surplus account to stated capital account to be able to recapitalise to GH₵400 million.
The move is to enable the bank to meet the Bank of Ghana’s order to commercial banks to stated capital to GH₵400 million by December 2018.
The central bank provides three options through which banks can recapitalise – a fresh capital injection, recapitalisation through income surplus or a combination of both.
StanChart’s Board Chairman, Dr Ishmael Yamson, told shareholders at an annual general meeting in Accra on Thursday that after various considerations, the bank’s Board decided that “the best option is to use our income surplus standing in our books as at 2017 to raise this new capital requirement.
“Consequently, the board shall not recommend the payment of dividend on ordinary shares in 2017,” he added. The bank’s stated capital was GH₵86 million as of December 2017. The income surplus account held in excess of GH₵251.3 million as of the same period.
StanChart’s CEO, Ms Mansa Nettey, noted in her statement to shareholders that the decision to recapitalise through income surplus was “the most efficient option.”
Meanwhile, the bank’s earnings per share rose by 27 per cent from GHS1.92 to GH₵2.44 on the bank of strong pre-tax profit, while profit before tax rose by 22 per cent to GH₵422.3 million.
Its operating income was up nine per cent to GH₵676.8 million. Return on equity however declined to 32.3 per cent from 34 per cent. | Owned and Operated by Graphic Communications Group Ltd.