Standard Chartered Bank (SCB) turned in a record performance in Middle East and Africa in 2022 with underlying working profit of $937 million (up 25% on constant currency basis) driven by higher income and disciplined cost management. 

 

Underlying profit before tax was $819 million (up 4% on constant currency basis) despite higher loan impairment that is primarily related to provisions for sovereign downgrades in Ghana & Pakistan.

 

Operating income of $2.61 billion was up 7% (up 14% constant currency) driven by growth in Transaction Banking, Financial Markets and Retail. Income was up 9% (up 15% constant currency) in Middle East, North Africa, & Pakistan and up 3% (up 13% constant currency) in Africa.

 

Risk-weighted assets

Risk-weighted assets (RWA) were 17% lower than December 2021, despite the impact of sovereign downgrades, due to continuing RWA optimisation activities and de-risking in markets with elevated macro-economic risk.

 

Loans and advances to customers were down 14% (9% down on constant currency basis) and customer accounts were down 8% (3% down on constant currency basis) since December 31, 2021.

 

Commenting on the results, Sunil Kaushal, Regional CEO, Africa and Middle East said: “In 2022, we achieved remarkable success as we advanced our transformation journey to recalibrate and restructure our network across Africa and the Middle East. Our outstanding financial performance is a reflection of the efforts and dedication of our team.”

 

“As we forge ahead to drive future growth, we are excited about the scale of opportunities across the region. Despite ongoing challenges, the GCC markets are expecting to outpace global growth on the back of oil recovery, increased government spending and bilateral trade negotiations. We remain committed to investing in our differentiated international network, our affluent client business and market-leading digitisation initiatives to help our clients achieve prosperity, as we continuously aim to be an industry leader across the region,” Kaushal concluded.

 

Strategic priorities

The bank’s strategic priorities include providing best-in-class structuring and financing solutions and drive creation through client initiatives; investing to accelerate growth in differentiated international network and Affluent client businesses; investing in market-leading digitisation initiatives in CPBB to protect and grow market share in core markets, continue with our transformation agenda to recalibrate our network and streamline structures and being an industry leader in the transition to net zero across the region.

 

Progress

The bank has strengthened its footprint with the approval for a banking licence in Egypt. It has once again led the AME bond and Sukuk markets in 2022, taking the top spot in the AME league tables and ranking #1 in Mena G3 issuance for the fifth year in a row.  

 

Its commitment to ESG across DCM helped it rank #1 in the AME ESG rankings where it doubled its volume and brought the year’s most innovative deals to market.

 

On Sustainable Finance the bank has brought new ideas to the market, and supported its clients with closing market firsts and landmark transactions that are creating a strong reputation for it amongst clients.

 

It has successfully launched end to end digital onboarding in Pakistan with embedded eKYC, allowing clients to seamlessly open accounts from the SC Mobile App. It has also expanded its agent banking proposition to five countries helping to drive financial inclusion by offering multiple touch points for clients to transact.  It has expanded digital wealth management solutions in Kenya and UAE.

 

The bank registered broad-based growth in income across products, with Financial Markets at the highest level since 2015. Its continuing cost discipline has allowed investments to continue through the cycle. CIR lower at 64% (vs. 66% in ‘21) and Revenue per Headcount growing 11% vs FY’21.-- TradeArabia News Service