Standard Chartered posts sharp decline in net profit
The subsidiary bank to the London-listed Standard Chartered PLC reported profits of sh19b, a sharp decline from sh80b recorded in the previous year, 2023.
Sanjay Rughani, CEO, Standard Chartered Bank Uganda. (Credit: Standard Chartered Bank)
By Ali Twaha
Journalists @New Vision
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Standard Chartered Bank Uganda reported a sharp drop of more than 70% in net profits after tax for the financial year ending December 31, 2024.
The subsidiary bank to the London-listed Standard Chartered PLC reported profits of sh19b, a sharp decline from sh80b recorded in the previous year, 2023.
In November last year, Standard Chartered announced plans to sell its Wealth and Retail Banking operations as part of a strategic shift at the group level. The deal is projected to be concluded next year.
According to the bank’s earnings report, the decrease in profitability occurred despite a slight increase in total income.
In the statement, Sanjay Rughani, CEO, Standard Chartered Bank Uganda, linked the decline to applicable tax payments to government.
“Costs grew by 6% year on year as we continue to make investments in our people and infrastructure. This resulted in a 3% drop in profit before impairment and tax. The Profit after tax reduced by 76% year on year due to a one-off tax payment recognised under applicable accounting and reporting standards,” he said.
“The foregoing notwithstanding, we continued to support our clients by leveraging the unique suite of products and services like wealth investments and advisory. Our digital platforms continue to be best in class with over 70 services that our retail and corporate clients continue to enjoy.”
According to the statement, the bank's total income increased to sh445b in 2024, up from sh433b in 2023. However, total expenditure surged to sh410b compared to sh326b in the review period. This resulted in profit before tax falling to sh35b from sh107b.
The bank earned sh145b from interest on loans and advances, sh135b from interest from investment securities compared to sh113b previously, and sh70b from foreign exchange income. Interest income on deposits and placements stood at sh45b. Fees and commissions income contributed sh47b.
Provisions for bad and doubtful debts increased to sh34.9b from sh32b. Non-performing loans and other assets were reported at sh31.2b. Total assets decreased to sh3.3 trillion, down from sh3.6 trillion at the end of 2023.