Standard Chartered Bank Ghana PLC recorded a stronger bottom line for the first half of 2026, even as revenue and operating income declined compared with the same period in 2025.

The bank’s group profit for the six months ended June 30, 2026, increased to GH¢320.00 million, up from GH¢290.06 million in the corresponding period of 2025. This represents year-on-year growth of approximately 10.3%.

However, group revenue fell by about 14.3% from GH¢940.77 million to GH¢806.11 million, while operating income declined by nearly 14.8% to GH¢798.40 million.

Lower Interest and Fee Income Weigh on Revenue

The decline in revenue was largely driven by weaker net interest income and fee-based earnings.

Group net interest income dropped by approximately 27.1% to GH¢387.69 million, compared with GH¢531.51 million in the first half of 2025.

Net fee and commission income also declined by about 13.9%, falling from GH¢147.81 million to GH¢127.23 million.

This weakness was partly offset by improved trading performance. Net trading income increased by approximately 11.4% to GH¢291.18 million, from GH¢261.45 million a year earlier.

Impairment Reversal Supports Profit

One of the most significant contributors to the improved net profit was a reversal of impairment losses on financial assets.

Standard Chartered recorded an impairment reversal of GH¢56.74 million in the first half of 2026, compared with an impairment charge of GH¢63.23 million in the same period of 2025.

As a result, operating income after impairment charges stood at GH¢855.14 million, compared with GH¢873.87 million in 2025, narrowing the impact of the decline in underlying operating income.

Total operating expenses increased slightly by about 1.1% to GH¢423.00 million, from GH¢418.19 million.

Personnel expenses rose to GH¢301.31 million, while other operating expenses declined to GH¢100.45 million.

Profit Before Tax Declines, but Lower Tax Boosts Net Earnings

Group profit before tax declined by approximately 5.2% to GH¢432.15 million, from GH¢455.67 million in the first half of 2025.

Despite the lower pre-tax profit, the bank reported a higher net profit because its total tax and levy charge fell significantly from GH¢165.62 million to GH¢112.15 million.

Basic and diluted earnings per share consequently increased from GH¢2.15 to GH¢2.37, representing growth of approximately 10.2%.

Assets and Shareholders’ Funds Expand

Standard Chartered Bank Ghana’s group total assets increased by approximately 15.5% to GH¢16.61 billion, compared with GH¢14.39 billion at the end of June 2025.

Loans and advances to customers rose by about 17.0% to GH¢2.31 billion, while amounts due from other banks increased sharply to GH¢3.90 billion, from GH¢1.13 billion.

Customer deposits grew by approximately 7.6% to GH¢11.63 billion, from GH¢10.81 billion.

Total shareholders’ funds increased by 26.3% to GH¢3.13 billion, supported by growth in income surplus and reserves.

Net asset value per share also improved from GH¢18.33 to GH¢23.17.

Strong Capital Position, but NPL Ratio Rises

The bank maintained a strong capital position during the period.

Its capital adequacy ratio improved to 32.04%, from 30.75% in 2025, while the Common Equity Tier 1 ratio increased to 29.93%.

The liquid ratio also strengthened significantly to 98.82%, compared with 86.39% a year earlier.

However, the gross non-performing loan ratio increased to 23.45%, from 18.17% in 2025. The NPL ratio excluding the loss category, meanwhile, improved to 0.84%, from 2.79%.

Cash Flow Under Pressure

The group recorded a net operating cash outflow of GH¢4.32 billion, compared with a net inflow of GH¢1.22 billion in the first half of 2025.

The outflow was mainly influenced by increases in mandatory reserve deposits with the Bank of Ghana, loans to other banks, trading assets and customer loans.

Cash and cash equivalents reported in the cash flow statement consequently declined to GH¢2.22 billion at the end of June 2026, from GH¢5.12 billion in June 2025.

Investor Takeaway

Standard Chartered Bank Ghana delivered higher net profit and earnings per share despite a notable decline in revenue, net interest income and fee income.

The improvement was largely supported by an impairment reversal and a significantly lower tax charge rather than growth in core operating earnings.

Investors may therefore focus on whether the bank can restore growth in interest and fee income during the second half of the year, while also monitoring the increase in its gross non-performing loan ratio.

At the same time, the bank’s strong capital adequacy, expanding asset base, higher shareholders’ funds and improved net asset value per share provide a solid financial cushion.