For the first nine months of 2018, the Ghanaian subsidiary of the British group Standard Chartered Bank declared a net benefit of GHC175 million ($36 million). This represents a drop by 24.4% compared to that realized during the same period in 2017 (GHC231.4 million).

The bank made no direct comments about the performance but, it should be noted that it performed well in a rather complex banking market and in an environment which prompted it to multiply its social capital by three and comply with the central bank’s requirements.

Its banking operating account of GHC539.6 million had risen by 10% compared to the YoY performance. However, the bank had to bear strong depreciation provision for some of its financial assets. From GHC18.1 million in September 2017, it rose to GHC93.8 million in September 2018.

Let’s note that the IFRS 9 standard which required potential risks to be accounted for by financial institutions contributed to the rise of this depreciation. This standard generated a provision of GHC16.4 million but, apart from that, normal provision multiplied about four times to reach GHC77.3 million.

 Idriss Linge