Standard Chartered Bank Ghana Limited

(Driving investment, trade and the creation of wealth in Ghana)

Unaudited financial statements 31 March 2016

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Standard Chartered Bank Ghana Limited Corporate information

Board of directors

Ishmael Yamson(Chairman) J. Kweku Bedu-Addo (Managing Director) Herbert Morrison Felicia Gbesemete Dr. Emmanuel Oteng Kumah Mansa Nettey Felix Addo David Adepoju

Secretary

Angela Okai Standard Chartered Bank Building John Evans Atta Mills High Street P. O. Box 768 Accra

Auditors

Deloitte & Touche Chartered Accountants 4 Liberation Road P. O. Box GP 453 Accra

Solicitors

Bentsi-Enchill Letsa & Ankomah 1st Floor Teachers’ Hall Complex Education Loop (off Barnes Road) Adabraka P. O. Box GP 1632 Accra

Registrars

GCB Bank Limited Share Registry Department, Head Office Thorpe Road, John Evans Atta Mills High Street P.O. Box 134 Accra

Registered office

Standard Chartered Bank Building John Evans Atta Mills High Street P. O. Box 768 Accra

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Standard Chartered Bank Ghana Limited Unaudited statement of profit or loss for the period ended 31 March 2016

3 months to

3 months to

9 months to

31 Mar 2016

31 Mar 2015

31 Dec 2015

GH¢’000 121,920 (19,256)

GH¢’000 118,727 (21,356)

GH¢’000 371,755 (95,374)

102,664

97,371

276,381

Fees and commission income Fees and commission expense Net fee and commission income

30,581 (2,073) 28,508

15,183 (1,640) 13,543

59,774 (8,078) 51,695

Net trading income Other income

19,443 -

17,186 -

69,799 5,140

Total non-interest income

47,951

30,729

126,635

128,100 (49,432) 78,668

403,016 (177,841) 225,175

Interest income Interest expense

Notes 2 3

Net interest income

Operating income Operating expenses Operating profit before impairment and taxation

4

150,615 (47,294) 103,321

Impairment charges on loans and advances

8

(2,026)

(17,325)

(195,456)

Profit before taxation

101,295

61,343

29,719

Taxation expense Profit for the period

(30,389) 70,906

(26,842) 34,501

1,928 31,647

GH¢ 0.63

GH¢ 0.30

GH¢0.25

Basic earnings per share (Ghana Cedi per share)

2

Standard Chartered Bank Ghana Limited Unaudited statement of financial position at 31 March 2016 3 months to 31 Mar 2016

3 months to 31 Mar 2015

12 months to 31 Dec 2015

Assets Cash and balances with Bank of Ghana Short –term government securities Due from other banks and financial institutions Loans and advances Taxation Medium -term investments in other securities Equity investment Other assets Property plant and equipment Intangible assets

GH¢’000 759,490 355,272 260,323 1,185,393 16,179 633,991 1 163,601 24,477 3,140

GH¢’000 572,261 586,053 323,098 1,406,897 474,655 1 222,392 25,773 4,318

GH¢’000 725,360 336,226 282,586 1,219,459 27,910 583,231 1 166,431 24,809 3,435

Total assets Liabilities Customer deposits Due to other banks and financial institutions Taxation Borrowings Interest payable and other liabilities Deferred taxation

3,401,867

3,615,448

3,369,448

2,415,159 119,456 237,326 6,112

2,454,787 184,372 14,538 379,496 17,092

2,422,382 141,290 1,552 243,858 5,266

Total liabilities

2,778,053

3,050,285

2,814,348

61,631 162,075 183,480 210,949 5,679 623,814

61,631 212,952 175,211 109,802 5,567 565,163

61,631 152,061 183,480 152,163 5,765 555,100

3,401,867

3,615,448

3,369,448

Shareholders’ funds Share capital Retained earnings Statutory reserve fund Credit risk reserve Other reserves Total shareholders’ funds Total liabilities and shareholders’ funds

These financial statements were approved by the Board of directors on …..April 2016 and signed on its behalf by:

…………………………………. J. Kweku Bedu-Addo Director

……………………………….. Mansa Nettey Director

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Standard Chartered Bank Ghana Limited Unaudited statement of changes in equity for the period ended 31 March 2016 Total

Share Capital

Balance at 1 January 2016

Retained Statutory Earnings Reserve

Credit Other Shareholders Risk Reserves Fund Reserve GH¢’000 GH¢’000 GH¢’000 152,163 5,765 555,100

GH¢’000 61,631

GH¢’000 152,061

GH¢’000 183,480

-

-

-

-

-

70,906 (1,313) (58,786) (793)

-

58,786 -

(86)

70,907 (1,313) (880)

61,631

162,075

183,480

210,949

5,679

623,814

Movement during the period

Profit for the period Dividend Paid Transfer to credit risk reserve Changes recognised As at 31 March 2016

Total

Balance at 1 January 2015

Share Capital

Retained Earnings

Statutory Reserve

Other Reserves

Shareholders Fund

GH¢’000 175,211

Credit Risk Reserve GH¢’000 137,934

GH¢’000 61,631

GH¢’000 150,319

GH¢’000 3,832

GH¢’000 528,927

-

34,501 28,132 -

-

(28,132) -

1,735

34,501 1,735

61,631

212,952

175,211

109,802

5,567

565,163

Movement during the period

Profit for the period Transfer from credit risk reserve Changes recognised As at 31 March 2015

4

Standard Chartered Bank Ghana Limited Unaudited statement of cash flows for the period ended 31 March 2016

Notes Cash flows from operating activities Profit before tax Adjustments for: Depreciation Amortisation of intangible assets Impairment on financial assets

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2016 GH¢’000

2015 GH¢’000

101,295

61,343

1,297 294 2,026

1,328 294 17,325

104,912

80,290

Change in: Investment securities Loans and advances Other assets Customer deposits Amounts due to other banks Interest payable, other liabilities Borrowings

(70,686) 32,041 2,831 (7,223) (21,835) (5,685) (1,552)

(249,058) (145,859) 4,591 256,202 (198,187) 117,902 (113,104)

Cash generated from operating activities Income tax paid

32,803 (18,658)

(247,223) (17,148)

Net cash generated from / used in operating activities Cash flows from investing activities Purchase of property and equipment

14,145

(264,371)

(965)

(503)

Net cash generated from investing activities

(965)

(503)

Cash flows from financing activities Dividend paid

(1,313)

-

Net cash used in financing activities

(1,313)

-

11,867 1,007,946

(264,874) 1,160,233

1,019,813

895,359

Net change in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents at 31 March

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5

Standard Chartered Bank Ghana Limited Notes to the unaudited financial statements for the period ended for the period ended 31 March 2016

1.

Significant Accounting Policies

The accounting policies followed for the period ended 31 March 2016 are consistent with those followed in the annual financial statements for the year ended 31 December 2015.

2.

Interest income

Placements, Special deposits Investment securities Loans and advances

3.

2016 GH¢’000 16,965 2,291 19,256

2015 GH¢’000 18,182 3,174 21,356

2016 GH¢’000 33,603 7,380 6,311 47,294

2015 GH¢’000 32,251 6,815 10,366 49,432

2016 GH¢’000 23,416 2,034 1,062 855 6,236 33,603

2015 GH¢’000 21,957 2,031 1,030 90 7,143 32,251

Operating expenses

Staff cost (Note 5) Premises and equipments (Note 6) Other operating (Note 7)

5.

2015 GH¢’000 2,351 52,642 63,734 118,727

Interest expense

Customer liabilities Borrowings

4.

2016 GH¢’000 10,354 52,700 58,866 121,920

Staff cost

Wages, salaries, bonus and allowances Social security costs Pension and retirement benefits Redundancy Other staff costs

6

Standard Chartered Bank Ghana Limited Notes to the unaudited financial statements for the period ended for the period ended 31 March 2016

6.

Premises and equipments

Rent Premise security and other related costs Depreciation Utilities Others

7.

2016 GH¢’000 770 1,328 927 294 1,846 1,146 6,311

2015 GH¢’000 1,243 1,174 1,351 294 603 5,701 10,366

2016 GH¢’000 2,413 (935) 1,478 548 2026

2015 GH¢’000 16,137 (746) 15,391 1,934 17,325

2016 GH¢’000 759,490 260,323 1,019,813

2015 GH¢’000 572,261 323,098 895,359

Loan impairment

Individual impairment charge Recovery Portfolio impairment charge

9.

2015 GH¢’000 1,173 1,482 1,328 1,122 1,711 6,815

Other operating cost

Communication Travels Stationary Amortisation Legal & Professional expenses Technology and Others

8.

2016 GH¢’000 1,694 1,515 1,297 1,899 974 7,380

Analysis of cash or cash equivalent during the period

Cash and balances with Bank of Ghana Due from other financial institutions

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Standard Chartered Bank Ghana Limited Notes to the unaudited financial statements for the period ended for the period ended 31 March 2016 10. Disclosures Quantitative Disclosures i. Capital adequacy ratio (%) ii. Non-performing loan (NPL) ratio – BOG basis (%) iii. Non-performing loan (NPL) ratio – IFRS basis (%)

2016 Mar 19.43 47.68 38.29

2015 Mar 19.42 26.80 23.9

2015 Dec 15.35 43.40 41.00

a) Qualitative Disclosures i. The Bank's dominant risks are: credit risk, liquidity risk, market risk, and operational risk. ii. The Bank’s Risk Management Framework, defines the approach to risk management and the framework within which risks are managed and risk-return tradeoffs made. The risk management framework establishes common principles & standards for the management and control of all risks, provides a shared framework and language to improve awareness of risk management processes and provides clear accountability and responsibility for risk management. The core components of the risk management framework include our risk classifications, risk principles and standards, definitions of roles and responsibilities and governance structure. The processes followed in risk measurement and their management for the period ended 31 March 2016 are consistent with those followed for the year ended 31 December 2015. 2016 Mar Nil Nil

iv. Default in statutory requirements (times) v. Sanctions for statutory default (GHS’000)

2015 Mar Nil Nil

2016 Dec Nil Nil

"The financial statements do not contain untrue statements, misleading facts or omit material facts to the best of our knowledge"

Signed

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