2019 was a stellar year for Standard Chartered Bangladesh
2019 was a stellar year for Standard Chartered Bangladesh
Standard Chartered Bangladesh logged in 14.33 % higher profits for 2019, marking the next consecutive year of double-digit growth of gains for the British lender.
Last year, the bank recorded net profits of Tk 1,282.59 crore, according to its financial statements released on Tuesday.
Although a lot of the banks in Bangladesh are yet to report on the 2019 financial performance, the web income posted by Standard Chartered is most likely to be the highest in the sector because of this year given the operating profit figures announced earlier at the close of the 2019.
The result is based on the emerging market-focused bank's performance elsewhere: Standard Chartered's gross annual pre-tax profit was up 46 per cent at $3.7 billion for the entire year.
"2019 is a very successful year for Standard Chartered, both for the group and for the lender in Bangladesh," said Naser Ezaz Bijoy, ceo of Standard Chartered Bangladesh.
The bank's retail loans and advances, among the major tools for earning profits, stood at Tk 5,370.77 crore in 2019, up 8.75 % from a year earlier.
Loans to corporate clients stood at Tk 17,449.21 crore last year, up marginally from the prior year.
Corporate clients got around 70 per cent of the bank's total outstanding credit amounting to Tk 25,075.88 crore as of December last year.
The lender saw good success in bringing down its default loans this past year, at a time when the sector was struggling to keep down soured assets.
In 2019, its default loans decreased 44.34 per cent year-on-year to Tk 185.49 crore -- an exploit that helped it manage the robust profit.
Total deposits in the lender, however, decreased 6.90 % year-on-year to Tk 27,973.53 crore in 2019.
Its capital adequacy ratio to risk weighted assets also stood at 23.15 %, which is much greater than the actual requirement of 12.50 % as per the Basel III guidelines.
This means the foreign bank, which has experienced Bangladesh for 115 years now, in addition has strengthened its capital base and asset quality in tandem.
"The core focus of our strategy has been to drive growth in a solid, safe and sustainable manner, while maintaining both cost and capital discipline," said Bijoy, who has been steering the wheels of the lender since 2017.
The bank saw a rise in flows across key trade and investment corridors -- particularly on the trunk of large-scale infrastructure development programmes.
The lending company has made a wholesome contribution to the national exchequer, depositing total Tk 1,137 crore in taxes in a variety of forms, which includes both the bank's tax obligation, and tax payments that its clients did through the lending company.
"Our priority now could be to see how we are able to support our clients who've had a satisfactory background with us before the impact of coronavirus."
The lender has been working with various trade bodies with a view to bettering the liquidity situation, easing access to finance businesses of all scale and helping businesses manage their cashflow.
"As well, we remain wanting to work with the policymakers to implement appropriate fiscal and monetary measures to improve the resilience of our economy."
Once the country overcomes this challenge together, the lender has confidence that the economy will retain its growth momentum, Bijoy added.
