StanChart Posts Its Highest Profits In Africa And Middle East Region

Standard Chartered PLC released its financial results for the full year and fourth quarter ending 31 December 2021. In Africa and the Middle East region, the Bank has recorded its highest Operating Profit since 2015.

The income for the lender grew by 3.5 percent to USD 2,446 million despite the adverse impact of rate cuts on margins. Record levels of income were reported in the bank’s Financial Markets and Wealth Management business.

Sustained cost discipline resulted in a net reduction of 4 percent year-on-year despite continuing investments. This generated positive income-to-cost jaws of 7 percent increased by 21 percent year-on-year.

At the same time, Operating Profit grew to a robust USD 856 million, recording the highest level since 2015. The strong improvement in the region’s Return of Tangible Equity (ROTE) ratio at 8.8 percent

A significant turnaround in the UAE with a healthy Operating Profit of USD 242 million compared to (USD 110 million) during the same period last year, driven by cost reductions and de-risking actions.

Pakistan delivered its highest ever Operating Profit, driven by strong balance sheet growth and continued productivity improvements.

Middle East (ex-UAE) saw strong income growth driven by Saudi Arabia while maintaining cost discipline, resulting in a multi-year high level of Operating Profit.

The Bank’s income in Africa grew by 9 percent on a constant currency basis driven by the digital banking momentum and strong pipeline conversion; Operating Profit for Africa was at the highest level since 2015.

“2021 was an exceptional year for us in Africa and the Middle East region. Our record financial performance demonstrates the progress made in the execution of our strategy,” Commenting on the results, Sunil Kaushal, Regional CEO, Africa, and the Middle East said.

The record performance was also driven by income growth despite the lower interest rate which impacted the bank’s cash management and retail businesses.

“Throughout the year, we accelerated our digital transformation, proudly expanding our digital banking network in Pakistan, in turn strengthening our customer base through enhanced connectivity. Aligned to the Kingdom of Saudi Arabia’s vision 2030, we have also expanded our presence in Saudi Arabia last year to provide project finance, capital markets, and cash management support to promote trade and investments.” Sunil concluded.