Standard Chartered (Africa and Middle East) has reported a remarkable pre-tax profit of $1.31 billion for the 2023 financial year, marking a significant milestone for the bank.
The Chief Executive Officer of Standard Chartered AME, Sunil Kaushal, attributed this achievement to the institution’s unwavering commitment to customer success.
Kaushal stated, “We are proud to announce an annual profit of $1.31 billion for Africa and the Middle East, the highest in the past decade. This outstanding result reflects the bank’s continued dedication to client satisfaction and strategic growth initiatives. We remain committed to fostering global market connections and providing clients with valuable investment opportunities and solutions, further solidifying our position as the Group’s fastest-growing region.”
Standard Chartered’s 2023 Strategic Report revealed robust growth fundamentals based on various metrics, including a substantial increase in operating income, significant growth in profit before tax, strong border income expansion, a widened loan net, leadership in the transition to a net-zero goal, and an improved cost-to-income ratio.
An analysis of the bank’s figures showed a 66% growth in profit before tax, reaching $1.31 billion — the highest annual profit since 2015. This growth was driven by increased income and a net release in credit provisions, partially offset by rising expenses.
Operating income witnessed a 14% rise to $2.81 billion, supported by notable growth in cash management, retail deposits, and financial markets. The Middle East, North Africa, Pakistan saw a 29% increase in income, while Africa experienced a 1% rise.
Standard Chartered reported a widened loan and advances net, with loans to customers increasing by 8% year-on-year and customer accounts growing by 4% since December 31, 2022. Risk-weighted assets were 6% lower compared to the previous year, despite the impact of sovereign downgrades.
In the financial year 2023, the bank recorded a net release of credit impairments amounting to $91 million, in contrast to a $119 million charge in 2022. This change reflected the non-recurrence of sovereign-related impairments and releases related to historic CCIB provisions.
Furthermore, the bank achieved a substantial cross-border income growth of 39%, fueled by broad-based expansion across key corridors.
Standard Chartered’s focus on international banking propositions and its diverse footprint across Africa and the Middle East resulted in a remarkable 150% growth in the priority banking client base across international banking corridors for the region.
In line with its global strategy of achieving operational efficiencies, reducing complexity, and driving scale, Standard Chartered recently divested its subsidiaries in Angola, Cameroon, The Gambia, and Sierra Leone to Access Bank. As part of the deal, Access Bank also acquired Standard Chartered Bank’s consumer, private, and business banking business in Tanzania.
The bank stated that the selective sale of operations in Sub-Saharan Africa aligns with its broader objectives and emphasizes the pursuit of operational excellence.