Driving Commerce and Prosperity Through Our Unique Diversity from the Catwalk to Your Wardrobe
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To know more, call toll-free on 0800-740100 or 0302-740100 today. sc.com/gh Terms and conditions apply. Standard Chartered Bank Ghana Limited 2 Annual Report 2017 Notice & Agenda Notice is hereby given that the Annual General Meeting of Standard Chartered Bank Ghana Limited will be held at the National Theatre, opposite the Efua Sutherland Children’s Park, Accra on Thursday 7th June 2018 at 11.00am for the ordinary business of the Company. Agenda 1) To receive and consider the reports of the directors and auditor, the balance sheet as at 31st December 2017 together with the pro t and loss and income surplus accounts for the year ended on that date 2) To elect directors 3) To approve directors’ remuneration 4) To appoint a new auditor 5) To approve the remuneration of the auditor Special Business 6) To consider and if thought t, to pass the following resolutions as recommended by the directors, which will be proposed as Special Resolutions: a. That an amount of GH¢302million (gross of withholding tax) be transferred from the Company’s Income Surplus to Stated Capital. b. That the Directors be and are hereby authorised to apply the aforementioned amount to make full payment for 19,251,214 ordinary shares of no par value, such shares to be issued as fully paid to the existing shareholders in proportion of 1 new share for every 6 existing shares held. However these bonus shares will not attract dividend for the nancial year ended 31st December 2017, but will be eligible for future dividends. Dated this 22nd day of February, 2018 BY ORDER OF THE BOARD SIGNED ANGELA NAA SAKUA OKAI (COMPANY SECRETARY) Note: A member of the Company entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy to attend and vote instead of him/her. Such a proxy need not be a member of the Company. A form of proxy is on page 117 in the Annual Report. 3 Who we are Standard Chartered Bank Ghana Limited is Ghana’s premier bank drawing its history from the Bank of British West Africa established in 1896. We are a member of a leading international Bank Group with presence in 63 markets worldwide. Our heritage and values are expressed in our brand promise, Here for good. The Bank is made up of client segments supported by Functions. Standard Chartered Bank Ghana Limited is listed on the Ghana Stock Exchange. $ $ $ For more information please visit sc.com/gh Follow Standard Chartered Bank Ghana Limited on Facebook.com/standardcharteredGH Standard Chartered Bank Ghana Limited 4 Annual Report 2017 Contents Strategic report 06 Our purpose 07 What we do 08 Chairman’s statement 12 Chief Executive’s review 15 Economic environment 16 Business model 20 Client segment reviews 26 Chief Financial Of cer’s review 28 Stakeholders & responsibilities Corporate governance 34 Board of directors 38 Management team 44 Statement on corporate governance Financial statements 48 Report of the Directors 53 Independent Auditor’s report 58 Statement of pro t or loss 59 Statement of comprehensive income 60 Statement of nancial position 61 Statement of changes in equity 62 Statement of cash ows 63 Notes to the nancial statements Supplementary information 115 Five year summary 5 STRATEGIC REPORT Our purpose OUR PURPOSE Driving commerce and prosperity through our unique diversity. FINANCIAL KPIs NON FINANCIAL KPIs Return on Equity Capital Adequacy Ratio Diversity and Inclusion: Women in senior roles 2017: 32.30% 2017: 26.00% 2017: 44% 2016: 2016: 34.00% 2016: 21.59% 33% OTHER FINANCIAL MEASURES Operating Income Earnings per share Profi t before Tax GH¢676.8m GH¢2.44 GH¢422.3m up 9% up 27% up 22% Functions Our client facing businesses are Human Resources Legal IT & Operations supported by six functions, which Recruits and builds talent Enables sustainable Responsible for the while providing learning and business and protects Bank’s operations, work together to ensure day to development opportunities the Bank from systems development day operations run smoothly to motivate colleagues legal-related risk and technology infrastructure and are compliant with banking regulations Standard Chartered Bank Ghana Limited 6 Annual Report 2017 What we do REPORT STRATEGIC Client segments with differentiated expertise Corporate & Institutional Banking governance Corporate Serving large corporations, governments, banks and investors Operating income GH¢382.7m Financial statements Financial Commercial Banking Supporting small and mid-sized companies Operating income GH¢63.5m Supplementary information Retail Banking Serving individual clients and small businesses Operating income GH¢230.6m Risk & Compliance Finance Corporate Affairs and Responsible for the sustainability of our Incorporates Finance, Supply Chain and Brand & Marketing business through good management Property. The leaders of these functions Manages the Bank’s communications of risk across the Bank and ensuring report directly to the Chief Financial Offi cer and engagement with stakeholders in that business is conducted in line with order to protect and promote the Bank’s regulatory expectations reputation, brand and services 7 STRATEGIC REPORT Chairman’s statement Chairman’s statement We made Ghana’s economic performance opportunities as market conditions in 2017 improved signifi cantly improved. We made signifi cant signifi cant following years of diffi culties progress in 2017 posting progress in 2017 which led to a downturn strong fi nancial performance, in growth between 2013 and 2016. a testament to the disciplined posting strong fi nancial The rebound of the economy was execution of the Bank’s strategy performance, a testament characterised by a GDP growth of maintaining a strong balance of 8.5 per cent in 2017 from 3.7 per sheet, improving profi tability and to the disciplined cent in 2016 resulting in increased driving operational effi ciencies. execution of the trade, investor confi dence and As we reshaped the balance sheet Bank’s strategy increased momentum in the we were cautious about driving business environment. revenue growth. Underlying profi t before tax however increased Distinguished Shareholders, Ladies Business performance by 22 per cent to GH¢422.3 million. and Gentlemen, it is my pleasure Earnings per share increased by 27 to welcome you to the 48th Annual 2017 marked the second full year per cent from GH¢1.92 to GH¢2.44. General Meeting of Standard of implementing our refreshed We are now in a position to drive Chartered Bank Ghana Limited and strategy aimed at making the revenue growth. to present your company’s Annual Bank more effi cient and resilient The Management Team has placed Report and Financial Statements for to external shocks while tightening business growth on an upward the year ended 31 December 2017. our risk and control measures. trajectory to deliver accretive returns Our priorities at the beginning of the 2017 was characterised to benefi t our clients, shareholders, year were to focus on our clients, by economic uncertainties driven employees, communities and all putting them at the center of our mainly by geopolitical tensions other stakeholders. which had direct impact on the operations, ensuring excellent governance and maintaining high global economy with implications Recapitalisation and dividend for emerging market economies ethical standards. These are critical to achieving sustainable long-term such as ours. However we saw The Central Bank issued growth and improving long-term an easing of the macroeconomic a new directive raising the shareholder value. conditions towards the end minimum capital requirement for of the year under review, buoyed We entered 2017 with cautious banks to GH¢400million from by accelerated GDP growth. optimism while focusing on growth GH¢120million by December 2018. The Board has looked at various options to raise the new capital and has decided that the best option is to use our income surplus standing in the books as at the end of 2017 to raise this new capital requirement. Consequently, the Board shall not recommend the payment of dividend on Ordinary shares in 2017. Bonus shares Given that shareholders have always encouraged the Board Ishmael Yamson Chairman to consider awarding bonus shares, the Board is recommending 1 share for every 6 shares held. Standard Chartered Bank Ghana Limited 8 Annual Report 2017 STRATEGIC REPORT STRATEGIC Share price performance partners to deliver programmes Board changes focused on health and education. It is also noteworthy that during 2017, Two new members were appointed Standard Chartered Bank Ghana In May 2017 we launched Goal, to the Board in July 2017. Mr Henry governance Corporate Limited stocks were among the best our programme to empower Baye, Head, Retail Banking was performing on the Ghana Stock girls and young women through appointed Executive Director and Exchange with the stock appreciating sports and life skills training. Professor Akua Kuenyehia was also by 107 per cent in 2017.