Pays 125b Dividend per Share

Standard Chartered Bank (SCB Gambia) Limited has had another successful financial year, closing with a net profit of D70.303 million for the year ended 31 December 2006.

Despite the increased challenging condition in the Gambia banking industry, SCBG was able to weather the storm and stand the test of time with a gross profit (profit before provision for credit losses) of D176.686 million for the year 2006.

The bank’s shareholders also received two interim dividends of 30 bututs (b) each with a final dividend of 65b per share for the year ended 31 December 2006, making it a total dividend per share of 125b for 2006.

The bank’s profit before taxation decreased by over 36.44% from D198.720 million in 2005 to D126.306 million in 2006, while the net profit also decreased by over 43.9% from D125,338 million in 2005 to D70,303 million in 2006.

Earnings per share declined by 92b from 209b in 2005 to 117b in 2006, while total dividend per share cut down also to 125b in 2006 from 839b in 2005.

The bank’s return on equity decelerated by 27% from 59% in 2005 to 32% in 2006.

The bank’s capital adequacy increased by 4.32% from 51.6% in 2005 to 55.92% in 2006, while its total current assets that is in cash or can quickly be turned into cash (liquid assets) to meet its short-term obligations, or pay its debts as they fall due, increased by 6% from 87% in 2005 to 93% in 2006.

"Standard Chartered Bank Gambia delivered another set of satisfactory results against the background of an increasingly competitive environment, shrinking margins and declining interest rates," said the bank’s Chief Executive Humphrey Mukwereza at their 29th annual general meeting (AGM) held on Thursday at the Kairaba Beach Hotel in Senegambia.

"The Bank won the ‘Best Bank of the year 2006’ award from The Banker magazine thus endorsing our market leadership and confirming that we are fully aligned to our Group strategy of being ‘The world’s best international Bank, leading the way in Asia, Africa and the middle East’."

He also said the bank registered significant financial progress. "Customer deposits grew by almost 10% and both current and savings products registered significant growth," noted Mr Mukwereza, adding: "The incremental deposits allowed us to increase our investment holding of Government Treasury bills."

He further said: "On the lending front, we made good progress to position both our Client Relationships and Consumer Banking portfolios for future growth. To recognize the risk underwritten by the Bank and to comply with regulatory requirements, it was deemed prudent and necessary to make a provision for credit loses amounting to GMD50.38 million."

On the way forward for the bank, Mr. Mukwereza also said: "The Banking Industry in The Gambia is transforming at a fast and unprecedented pace, As an institution we are ready for the challenge and committed to being the ‘Right Partner’ to our customers and stakeholders. Thus customer feedback is at the heart of everything we do."

According to the Chairman of the bank, Mr. Momodou B.A. Senghore, the bank’s profit growth was constrained by declining interest rates and the need to make provisions for potential credit losses in line with Group (SCB international) practices and regulatory requirements.

He said all licensed commercial banks that meet the minimum capital and statutory reserve ratio of 1:1 set out by the Central Bank of The Gambia, are now required to transfer 15% of their annual profits to statutory reserve. "Accordingly, an amount of D10.5 million was transferred to statutory reserve for the year," Chairman Senghore explained.

The Chairman and the Chief Executive thanked all customers, shareholders and staff of the bank for their support and invaluable service to the bank.

They also commend the authorities of the country for creating a conducive environment for banking in The Gambia, and reiterated the commitment of their corporate responsibility to the people and the development of the country. 

They as well highlighted some of the developments and the new products and services the bank has established over the years and promised better days ahead for their employees and customers.