Banking and Finance

Stanchart grows profit by 69% in third-quarter 2020

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Standard Chartered Bank registered a strong growth for the third quarter of this year, as profit increased by 69% year-on-year to reach ยข344 million, according to its 2020 quarter three unaudited financial statement.

The tier-one bank recorded outstanding growth in all income lines, despite the covid-19 pandemic.

Whilst interest income jumped from ยข423 million in September 2019 to ยข500 million in September this year, the trading income also grew by 40% to ยข168 million in the nine months of this year.

Itโ€™s one of the most efficient banks in the country today as cost-to-income ratio-that is the measurement of costs in relation to earnings-was 33% during the period, far below industry average.

Shareholders of the bank will be smiling as earnings per share hit ยข2.54 as against ยข1.49 a year ago.

In terms of the balance sheet, Stanchart balance sheet size was strong, hitting ยข15.3 billion.

Customersโ€™ deposits was virtually unchanged at ยข5.8 billion at the end of September 2020. It stood at ยข5.7 billion the same period last year.

Loans and advances went up albeit slightly by 4% to ยข1.7 billion. That might indicate that the bank slowed down lending activities during the covid-19 epic period to prevent any potential loan loss/losses.

For the stability of the bank, Stanchart, on the other hand, registered a Capital Adequacy Ratio-a measurement of a bankโ€™s availableย capitalย expressed as a percentage of a bankโ€™s credit exposures-of 17.96% and an NPL less loan loss of 7.85% in the third quarter of this year. ย Without loan loss, the NPL was 23.42%.

 September 2020September 2019
PBT491m289m
Customer deposits5.8bn5.7bn
Liquid ratio87.67%96.4%

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.