Our Group Leading the way for over 150 years
Standard Chartered is the bank that leads the way. It combines deep local knowledge with global capabilities. It is a leader within the growth markets of Asia, Africa and the Middle East. Internationally employing 42,000 people, representing 80 nationalities in 950 locations, serving 50 countries, Standard Chartered aims to be the right partner. Across it’s network the bank is trusted for it’s outstanding standards of governance and the commitment to making a difference to the communities in which it operates.
We continue to lead the way and confirm our commitment to all our stakeholders.
Middle East
Africa
Asia
ContentBusiness Highlights 2
Notice and Agenda 3
Five Year Financial Summary 4
Chairman’s Statement 6
Chief Executive’s Review 8
Board of Directors, Officials and
Registered Office 15
Board of Directors 16
Report of the Directors 18
Report of the Auditors 19
Profit and Loss Account 20
Balance Sheet 21
Cash Flow Statement 22
Notes to the Financial Statements 23
Form of Proxy 41
Standard Chartered Bank Ghana Limited is a member of the Standard Chartered Group. Our business model is similar. We provide Consumer Banking Services to individuals and small to medium size businesses, and offer Wholesale Banking capabilities to corporate and institutional clients. Our Wholesale Banking capabilities include, but are not limited to, syndicated loans, cross-border structured trade finance, international payment platforms, cash management services, and more recently our globally acclaimed WebBanking.
With over 110 years in Ghana, we have unmatched knowledge and understanding of our customers, communities, people, regulatory environment and continue to deliver outstanding returns to our shareholders.
Standard Chartered Bank Ghana Limited
From our inception as the Bank of British West Africa, to our evolution into Standard Chartered Bank Ghana, the pursuit of banking excellence and exceptional service to our stakeholders has remained our hallmark.
www.standardchartered.com 01
Business Highlights
Net interest income
up 25to ¢441
Net revenue
up 18to ¢711
2004 ¢352bn 2004 ¢601bn
Profit after taxation
up 21to ¢2322004 ¢193bn
Loans and advances
up 32to ¢2,161
Dividends per share
up 20to ¢11,500
2004 ¢1,637bn 2004 ¢9,574
Earnings per share
up 21to ¢13,1932004 ¢10,942
Employees
600Proposed dividends
2004 593
¢2022004 ¢168bn
Branches
192004 19
Loans and Advances¢ billion
1,3
87
1,7
56
Net Revenue¢ billion
Profit before taxation ¢ billion
305
354
297
215
167
01 02 03 04 05
Dividend per share Cedis
8,7659,574
11,500
5,0004,200
01 02 03 04 05
Leading the way across our business
The world’s best international bankLeading the way in Asia, Africa and the Middle East
The Right Partner - Leading by Example
Strategic Intent
Brand Promise
Values
Approach
Commitment tostakeholders
Responsive Trustworthy Creative International Courageous
ParticipationFocusing on attractive, growing markets
where we can leverage our customerrelationship and expertise
Competitive PositioningCombining global capability, deep local
knowledge and creativity to outperform ourcompetitors
Management DisciplineBalancing the pursuit of growth with firm
control of costs and risks
RegulatorsExemplary governance
and ethics whereverwe are
InvestorsA distinctive investmentdelivering outstanding
performance and superiorreturns
CommunitiesTrusted and caring,
dedicated to making adifference
Our PeopleHelping our people to
grow, enabling individualsto make a difference and
teams to win
CustomersPassionate about our customers’ success
delighting them with thequality of our service
Five year review
2,1
61
01 02 03 04 05
89
4
92
2
1,4
11
1,6
37
425 44
7
552 60
1
711
01 02 03 04 05
02 Standard Chartered Annual Report and Accounts 2005
Notice and Agenda
Notice is hereby given that the Annual General Meeting of Standard Chartered Bank Ghana Limited will be held at the Accra International
Conference Centre, opposite the State House Building, Osu, Accra on Thursday, 30 March, 2006 at 11.00 a.m. for the ordinary business of
the Company.
To receive the reports of the Directors and Auditors, the balance sheet as at 31 December, 2005 together with the Profit and Loss
and Income Surplus Accounts for the year ended on that date.
To declare a Dividend.
To pass a single resolution appointing all Directors seeking re-election at this meeting.
To elect Directors in place of those retiring.
To approve Directors' remuneration.
To approve the remuneration of the Auditors.
A member of the Company entitled to attend and vote is entitled to appoint a proxy to attend and vote instead of him/her. A proxy need not be a
member.
A form of proxy is attached.
thDated this 27 day of January, 2006
BY ORDER OF THE BOARD
Dawn Kwesi Zaney
(Board Secretary)
Agenda
www.standardchartered.com 03
Five Year Financial Summary
2001 2002 2003 2004 2005GHC'm GHC'm GHC'm GHC'm GHC'm
Interest income 445,051 383,314 471,834 479,115 581,960Interest expense (180,181) (97,523) (137,914) (126,913) (140,630)
Commissions and fees 74,376 133,751 156,029 184,517 198,892 Other operating income 85,507 27,583 62,276 64,741 70,433
Total operating expenses (184,216) (224,930) (273,283) (290,549) (327,147)(Charge)/credit for bad and doubtful debts (73,803) (6,791) 14,067 (6,098) (29,255)
Other income - - 3,760 22 99
Taxation (58,627) (84,582) (120,510) (112,294) (122,200)
Profit after taxation 108,107 130,822 176,259 192,541 232,152 Interim Dividend - - (47,997) (51,028) - Transfer to Statutory Reserve Fund (13,513) (16,353) (22,032) (24,068) (58,038)
Retained Profit 94,594 114,469 106,230 117,445 174,114
GHC GHC GHC GHC GHC
Earnings per Share 6,144 7,435 10,017 10,942 13,193
Interim Dividend per Share - - 2,728 2,900 -
Proposed Final Dividend per Share 4,200 5,000 6,037 6,674 11,500
Returns on Assets (PBT/Total Assets) 7% 7% 8% 7% 7%
Returns on Equity (PAT/Equity) 38% 36% 43% 43% 42%
Capital Adequacy Ratio 10% 9% 12% 12% 20%
Cost/Income Ratio 43% 50% 49% 48% 46%
Net interest income 264,870 285,791 333,920 352,202 441,330
Net Revenue 424,753 447,125 552,225 601,460 710,655
Operating Profit 166,734 215,404 293,009 304,813 354,253
Profit before taxation 166,734 215,404 296,769 304,835 354,352
Shareholders' Equity 281,202 367,177 407,439 442,722 648,337 Total Assets 2,284,938 3,011,131 3,905,776 4,397,876 5,142,456 Total Deposits 1,636,143 2,164,769 2,617,945 3,076,645 3,254,708 Loans & Advances 894,445 921,775 1,410,759 1,636,744 2,160,603
04 Standard Chartered Annual Report and Accounts 2005
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• Cash Management • Trade Finance expertise • Auto Loans • Mortgages • Working Capital Finance
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Chairman’s Statement
We brought our expertise and knowledge to the advantage of our customers enabling us to report another strong performance for 2005. I am pleased to report that we have maintained the momentum:
Our dividend policy remains unchanged as it mirrors the investment profiles of our shareholders. The Board is thus recommending an annual dividend of GHC11,500 per share.
We have established and continue to nurture good relationships across our customer segments and our execution capabilities are robust.
We are revered as a class act on Governance in the industry and continue to strengthen our core Board structures. Our Board Audit and Risk Committee oversees our Compliance Risk Management (CRM) initiatives and ensures compliance with regulatory imperatives.
The talent mix on the Board is complementary. We continue to offer thought leadership on various economic reform initiatives such as the Foreign Exchange Act, land reform, anti-money laundering legislation, etc. Furthermore, the Board remains very proactive and focuses on timely identification and resolution of critical business challenges. The process is facilitated by the production of accurate and timely information on performance, franchise management, governance, people and talent.
We have a realistic and tangible view of our bank's future potential, which is bright, and will continue to communicate effectively with investors, customers, shareholders and regulators.
In 2006, we will be strengthening
Income is up 18 per cent to GHC711 billionProfit before tax is up 16 per cent to GHC354 billionStrong earnings per share growth up 21 per cent.
Governance
the bank's corporate responsibility and community committee. This will give us a sharper focus on the environment, our diversity and inclusion initiative, community and social investment.
Mr. Gavin Laws resigned from the Board last year to take up other responsibilities within the Group. I thank him for his valuable contribution. I am pleased to announce the appointment of Mr. Simon Millet, the Chief Executive Officer of Standard Chartered Bank Nigeria Limited as a Non-Executive Director.
The Ghanaian economy broadly performed well in 2005. Highlights include a stable currency with improving reserves, reducing interest rates and declining inflation, notwithstanding the forty-nine per cent increase in petrol prices. Data available indicates an increase in Foreign Direct Investment (FDI) and significant growth in inward remittances.
We are pleased that the policy mix, fiscal and monetary has been effective. The economy is achieving the much desired state of stabilisation and the business leaders' confidence index is relatively high. We understand the Government is committed to continue with relevant economic reforms, good governance and fiscal discipline.
It is, however, important that we emphasis that the only certainty today is a global sense of uncertainty. The range of issues varies from pandemics and hurricanes to terrorist acts, etc. Global developments will definitely introduce external shocks. The genius of sustainable economic performance may, thus, lie in the ability to move from stabilisation to growth. There is a case to be made for a better balance in delivering today whilst building a solid foundation for the future.
We remain very focused on organically growing our franchise in Ghana via our two businesses-
Economic Outlook
Strategic Progress
Sustainable performance lies in the ability of balancing today's deliverables with the imperative of building a solid foundation for the future
Standard Chartered continu strong growth
06 Standard Chartered Annual Report and Accounts 2005
Consumer Banking and Wholesale Banking. We have sound knowledge of the economy and are the only international bank in Ghana with an extensive network in the fastest growing economies of the world. A critical issue for us is thus to effectively leverage our Group's global knowledge creation capabilities to ensure the transfer of best practice and lead the industry with innovative value propositions that will positively impact developments in the Ghanaian market place.
Our Group's geographic diversity is a competitive advantage that enables us establish very effective trade and investment corridors between Ghana and the fastest growing regions of the world. We will continue to align our capabilities within opportunities presented in our industry and local macro economic development.
In Ghana, we are the best placed financial institution to facilitate the process of balancing diversity and alignment among various regional economic blocks. This is due to our Group's participation strategy that enables us to witness and experience at first hand, global changes in the world economy. We have unmatched experience in China, having established our presence almost one hundred and fifty years ago as the first foreign bank. In India, we are now the largest international bank. Furthermore, we are strategically located and play prominent roles in the other Asian economies such as Thailand, Indonesia, Singapore, Malaysia, South Korea, Hong Kong and Taiwan. In the Middle East and South Asia region, our presence is also extensive.
Locally we have sound legacy knowledge of our customer segments, a solid capital base and a professional and competent management team with a proven track record. We will continue to deliver value and results while respecting local practices and meeting international standards.
Well Positioned
Summary
Ishmael E. Yamson
Our results reflect our leadership position in the Ghanaian market which in turn, is a function of our business-building acumen. The macro economic environment is enabling and inspires relative confidence in the business community.
We will continue to take advantage of our global network to leverage on interactions and exchanges among emerging economic giants and Ghana. This indeed is the context within which we will be challenged to lead going forward. The importance of effectively managing interdependencies between the local economy and other world economies will increasingly become a differentiating factor in our success.
Our efforts in this area will ensure that Ghana’s economic agenda continues to take shape and is implemented effectively.
Chairman27 January, 2006
Highlights of 2005Income up by
18
16
21
20
To GHC 711b in 2005
Profit before tax up by
To GHC 354b in 2005
Earnings per share, up by
To GHC 13,193 in 2005
Dividend up by
To GHC11,500 in 2005
es to achieve
www.standardchartered.com 07
Chief Executive’s Review
Performance
Market/Industry Dynamics
Our financial results, for the year ended 31 December 2005, show an appreciable year on year growth. Profit before tax was GHC 354 billion, a 16 per cent increase from GHC 305 billion in 2004. Earnings per share rose 21 per cent to GHC 13,193. Dividends per share rose 20 per cent to GHC 11,500.Our stock price makes market watchers envious and appeals to income, value and growth investors.
Our performance reflects the positive trends in our macro-economic environment. The domestic economy is outpacing other regional economies facing the challenges of civil strive. Furthermore, geographically Ghana
sits along a regional trade axis with sea ports that facilitate trade to landlocked West African States. It is fair to argue that these are good times and we must seize the potential for growth. In doing so however, one must take into account the fact that competition is increasingly fierce.
There is a growing trend of financial services providers wanting to gain access to the domestic banking industry. Market watchers who have been deliberating on the reason for the present interest have been unable to reach a conclusion. What is certain is that Ghana is seen as a source of attractive returns and diversification by many players in the financial services sector. Customers on the other hand are increasingly better informed and will expect to see the introduction of a
wider range of value propositions and an overall reduction in the cost of financial intermediation. The authorities equally expect this trend, with hopefully, an increase in exposures to sectors such as Agriculture and the small to medium sized (SME) business segment. Statistics however, indicate that the local market is not deep enough and some sectors are problematic. Notwithstanding the drop in base interest rates, (from approximately 25 per cent in December 2004 to 22.5 per cent), the growth in credit to public and private sectors slowed to 31 per cent from 41 per cent in 2004. Banking assets rose 22.3 per cent year on year with non-performing loans remaining at 13.3 per cent. This is attributable to poor lending
Our strong financial performance, strategic clarity, healthy pipeline, pervasive commitment to quality and ambition to outserve the competition set us apart from the other players
We're leading the way with strategy for growth
08 Standard Chartered Annual Report and Accounts 2005
the right
practices constraining both the supply of capital and appetite for allocating capital to loss affected areas.
It is our view that there are some opportunities but a prerequisite for success will be the ability to have an effective mix of growth initiatives and defensive plays. Experience has however, revealed that such a mix is not always easy to achieve due to shareholders' expectations. This leaves room for some uncertainty. The industry will consequently need a regulatory framework that is effective but not too prescriptive.
Against this background I am pleased to confirm that our two businesses performed well.
Our consumer banking business has built up strong momentum. 2005 revenue growth was impressive (in double digits) and costs were reduced. The quality of the loan book remains an enviable benchmark in the industry notwithstanding the significant growth in assets over the period under review. All value centres performed remarkably well and we are well positioned for focused growth. We will improve market share and profitability on all value centres.
Wholesale Banking delivered a strong broadly based performance across all products and customer segments.
Overall revenue growth was 21 per cent year on year, led by Assets and Liability Management (ALM) 31 per cent, foreign exchange sales 13 per cent and foreign exchange trading 4 per cent. Costs were well contained and the bottom line was best in class, benchmarked against domestic players. We moved up the product sophistication curve and introduced innovative value propositions such as derivatives, created an investment corridor for offshore investors, maximised offshore/onshore strategic advantages, established an
Business Review
Consumer Banking
Wholesale Banking
Global Markets
Management Agenda 2006
In Wholesale Banking we will deepen client relationships and cross-sell more.
Across our franchise, we will accelerate improvement in service and innovation.
Our management agenda is broadly in line with our group's aspiration.
To accelerate growth in both businesses, focusing on priority market segments.
In Consumer Banking we will resource for growth and expand activities in all value centres. Furthermore, we will review the efficiency of our distribution channels and implement required changes.
There will be a sharper focus on our corporate responsibility initiatives with the introduction of efficiency measures to ensure brand differentiation. Our programmes will be in the areas of diversity, environment, HIV and malaria, blindness and education.
-
-
-
-
-
independent foreign exchange book and increased the cross sale of Global Market products.
We focused on our key business drivers and exceeded the annual targets notwithstanding competitive challenges such as declining trade margins and volumes, high cost of liabilities and increased competitive pressures on fees and commissions. With an overall double digit revenue growth on all product segments the unit remains the best performing Corporate Banking platform in Ghana. It is much bigger, more complex and competitive. We understand the market dynamics, continue to identify opportunities and will aspire to the size of our real potential.Our wholesale Banking business has been transformed.
Environmental challenges in the developing world are most disturbing. In Ghana, the concerns are in areas such as potable water, energy, and air quality which impact our customers, staff and the population at large. Our lending policies will increasingly require an assessment of environmental impact and we will lead the market with thought leadership aimed at improving the overall state of affairs. Our industry, as discussed earlier, is going through waves of changes and the external environment is getting tougher. There are key uncertainties that are bound to weaken consumer spending and intensify competition. We are developing the appropriate anticipatory skills and will set the context for our teams. Furthermore we have registered a subsidiary - Standard Chartered Investment Services Ghana Limited (SCIS) and are in the process of obtaining an operating license to enable us establish a local currency fixed income business aimed at broadening our wholesale banking product capabilities. A critical success factor will be the imperative of repeatedly reinforcing our “Good Corporate Governance Culture”.
Client Relationships
Looking Forward
Environment / Banking Industry
www.standardchartered.com 09
Risks
Customers /Service
In our changing environment the primary risk management parameters, such as credit, liquidity, market and country risk no longer suffice. Our concern today is with the overall management discipline, which in addition to the above, includes business, regulatory, operational and reputational risk. A primary requirement of our Corporate Governance Structure is that we take a holistic view of the full range of risk issues and establish a robust process for early identification and prompt resolution.
Our customers are increasingly better informed. What they are looking for is value for money. With the growing competitive pressure (a function of the increase in the number of financial institutions), we are experiencing the classic supply/demand squeeze. Our response will be to focus on our core business segments, improve product range and quality, leverage our direct marketing initiatives and outserve competition. Our outserve initiative continues to produce desired results as evidenced by an increase in customer retention and acquisition.
There is a better understanding of all the components of outserve: voice of the customer, process improvement, metrics and measurements, change management and communication. Our commitment to customer service is absolute and will be used as a source of distinction because we believe it will reduce customer attrition and create value.
Our brand positioning is well defined. In the local franchise the brand is a blend between modern and classic, quality service and value, enabling us retain loyal customers some of whom have maintained relationships with us for over 50 years and at the same time appeal to a larger share of customers of different ages. This is what is takes to deliver our brand promise: The Right Partner - Leading by Example.
The increase in the number of players in the financial services sector and the drive for scale has led to a hiring frenzy that could spell trouble ahead, especially if the market goes through a turbulent period. Incremental fixed overheads will not be easy to reduce.
We have a holistic, people centered approach; our corporate values have been well embedded to ensure that all our employees discover a common identity and move ahead in a unified direction. We are focused on ensuring that our people are proud of their bank, see a future in their bank and realise their bank cares about them and their families. Our Talent Management process involves effective sourcing, induction, development and retention. We have initiated a conscious process of institutionalising diversity and inclusion (D & I) imperatives and have
People
made deep end appointments of people of different D & I strands.There are structured career development plans for all staff. This has resulted in increased empowerment of our people and in international moves for many talented Ghanaians. The results are encouraging as there is a new sense of pride and confidence in our people.
We have a solid company; our capital base was further strengthened by GHC 90.9 billion, raised from our preference share issue in December. Our business strategy is sound and our execution capabilities are unmatched. Furthermore, we derive comfort from our global reach which gives us ready access to the emerging economic giants of Asia from where many local businesses are increasingly searching for opportunities.
We understand the essentials of our core business and global economic developments. This enables us to stand out from competitors in a very competitive market. Our responsibility in the industry is thus to continue to lead the way, and set standards in good corporate governance, management discipline, attracting foreign direct investment, talent development and exceeding our customers' expectations with world class service standards.
Standard Chartered Bank Ghana will continue to build on its solid foundation. We are well positioned to further deliver value to targeted industry and customer segments, and getting equitable returns on the value delivered. I remain confident in our overall franchise strategy.
Outlook
In Summary
Ebenezer N EssokaChief Executive Officer27 January, 2006
Global Finance Best Bank for Liquidity Management in Africa
Global Finance magazine recognised our Wholesale Banking’s liquidity management capability in Africa.
Our peopleWe have initiated a conscious process of institutionalising diversity and inclusion (D&I) imperatives.
10 Standard Chartered Annual Report and Accounts 2005
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Complete solutions with more advantages for your day today banking. Our current account benefits include:
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08
Leading the way in
iinnnnoovvOur segmented approach to product delivery resulted in the introduction of well researched and accepted customer value propositions. www.standardchartered.com
15 newSetting the standard
Product launches and relauncheshave positioned us for tremendousgrowth in 2006
99%ATM uptime
5 minutes Turnaround time at our Excel Centres
Leading the way with a Superior brand
Our brand is a blend between modern and classic, quality service and value.
Leading the way with derivatives
Interest rate swaps Cross currency swaps
12 Standard Chartered Annual Report and Accounts 2005
aattiivve e productsproducts
We believe great customer service is a key differentiator in our industry. As such, the Standard Chartered “Outserve” initiative was rolled out across the group in 2005 as a challenge to all staff to raise the bar in customer service
“A fresh approach to traditional products gives us a competitive advantage and sets
the standard across our markets.”
Leading the way with Outserve initiativesEmbedding service excellence in Ghana - our Outserve initiative has yielded overwhelmingly positive feedback from our customers!
excellence.Using tools such as our “Voice of Customer” (VOC) surveys, Customer Service Metrics and executive management First Hand Days (FHD), we have been able to more accurately gauge the
concerns of our customers and thus identify and remove service negatives. We are proud to report that Standard Chartered stands tall as a pillar of service excellence and continues to lead the way with superior delivery platforms for our customers.
¢3,255bnCustomer deposits
¢593bnContingent liabilities
www.standardchartered.com 13
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BOARD OF DIRECTORS Ishmael Yamson (Chairman, appointed 1/2/2005)Ebenezer N. Essoka (Chief Executive Officer)Samuel DaisieNorbert Kwasivi KudjawuHenry Gilbert DeiAlbert SaltsonAlexander Kofi Mensah Mould Michael Robertson Felix Gyekye Ousman Lamin (Appointed 11/2/2005)Simon Millet (Appointed 4/11/2005)Gavin Laws (Resigned 8/2/2005)
SECRETARY Dawn Kwesi Zaney
AUDITORS KPMGChartered Accountants25 Liberia RoadP. O. Box 242Accra
SOLICITORS Kudjawu & Co.Texaco HouseDerby AvenueP. O. Box 294Accra
REGISTRARS NTHC LimitedMartco HouseP.O. Box 9563Airport - Accra
REGISTERED OFFICE Standard Chartered Bank BuildingHigh StreetP. O. Box 768Accra
Telephone No: 664591
Board Of Directors, Officials And Registered Office
www.standardchartered.com 15
Board of Directors
2. Ebenezer N. EssokaChief Executive Officer (CEO) of Standard Chartered Bank, Ghana Limited. He is also the CEO of the Standard Chartered Bank Franchise in Central and West Africa. Appointed to the Board on 31July 2001.
1. Ishmael YamsonChairman, Standard Chartered Bank, Ghana Limited - appointed to the Board on 1February 2005. Also chairman for Unilever Ghana Limited.
4. Dawn ZaneyLegal advisor and Board Secretary. Appointed in October, 1997.
5. Henry Gilbert DeiAppointed to the Board in July 1998. A former Director General of SSNIT
3. Alex MouldExecutive Director, Client Relationships.Appointed to the Board on 24 March, 2003
6. Ousman LaminExecutive Director, Global MarketsAppointed to the board on 11 February 2005.
1 2
3 4
5 6
16 Standard Chartered Annual Report and Accounts 2005
11. Norbert Kwasivi KudjawuAppointed to the Board in November, 1975. A Senior Partner of Kudjawu & Co, a legal firm.
10. Samuel DaisieEconomic Consultant. Appointed to the Board in November, 1990.
Audit and Risk Committee 5. Henry Gilbert Dei10. Samuel Daisie11. Norbert Kwasivi Kudjawu
9. Felix GyekyeExecutive Director, FinanceAppointed to the Board on 13October, 2003.
8. Michael RobertsonChief Operating Officer, Africa and MESA based in London. Appointed to the Board 31 July, 2003.
9 10
11 12 7
7
7. Albert SaltsonExecutive Director, Consumer Banking. Appointed to the Board on 24 January 2002.
7
8
12. Simon MilletChief Executive Officer, SCB Nigeria.Appointed to the board on 4 November2005.
www.standardchartered.com 17
The Directors in submitting to the shareholders the financial statements of the Bank for the year ended 31 December, 2005 report as follows:¢m
Profit for the year ended 31 December, 2005before taxation is 354,352
from which is deducted taxation of (122,200)
giving a profit for the year after taxation of 232,152
Less: Transfer to Statutory Reserve Fund of (58,038)
leaving a balance of 174,114
to which is added balance on Income Surplus Accountbrought forward (excluding balance on StatutoryReserve Fund) of 219,132
giving a cumulative amount available for distribution of 393,246out of which a final dividend for 2004 of ¢6,674 per shareamounting to (117,445)
was paid leaving a balance on Income Surplus Account carried forward of 275,801
Directors are recommending a dividend of ¢11,500 per share amounting to ¢ 202,354 million.
In accordance with Section 29(c) of the Banking Act, 2004 ( Act 673), a cumulative amount of ¢180,953 million has been set aside to a Reserve Fund from the Income Surplus Account.
The Bank during the year incorporated a subsidiary, Standard Chartered Investment Services Ghana Limited. The subsidiary was yet to be issued with an operating license at the year end.
The Bank is a subsidiary of the Standard Chartered Holdings (Africa) B.V., a company incorporated in The Netherlands.
DIRECTORS
.
..................………..........EBENEZER ESSOKA
ACCRA,
27 January, 2006
Report Of The Directorsto the members of Standard Chartered Bank Ghana Limited
.....................………........FELIX GYEKYE
18 Standard Chartered Annual Report and Accounts 2005
Report of the Auditors to the members of Standard Chartered Bank Ghana Limited
We have audited the financial statements of Standard Chartered Bank Ghana Limited for the year ended 31 December 2005 as set out on
pages 20 to 40, and we have obtained all the information and explanations we required.
Respective responsibilities of directors and auditors
The directors are responsible for preparing these financial statements. Our responsibility is to express an independent opinion on these
financial statements based on our audit.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing. These standards require that we plan and perform our audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles
used and significant estimates made by the directors, as well as evaluating the overall financial statements presentation. We believe that our
audit provides a reasonable basis for our opinion.
Opinion
In our opinion, proper books have been kept and the financial statements, which are in agreement therewith, and prepared in accordance with
the Ghana Accounting Standards, comply with the Companies Code, 1963 (Act 179) and the Banking Act, 2004 ( Act 673) and give a true and
fair view of the financial position of the Bank at 31 December, 2005 and of the results of its operations and cash flows for the year then ended.
--------------------------------------------------CHARTERED ACCOUNTANTS25 LIBERIA ROADP. O. BOX 242ACCRA, GHANA
27 January, 2006
www.standardchartered.com 19
Profit and Loss Accountfor the year ended 31 December 2005
Note 2005 2004¢m ¢m
Interest income 5 581,960 479,115Interest expense 6 (140,630) (126,913)
441,330 352,202
Fees and Commissions income 198,892 184,517Other operating income 7 70,433 64,741
710,655 601,460
Operating expenses 9 (327,147) (290,549)
383,508 310,911Charge for bad and doubtful debts 11 (29,255) (6,098)
Operating Profit 354,253 304,813Other Income 8 99 22
354,352 304,835Taxation - Corporate Tax 12(i) (98,800) (81,810) - National Reconstruction Levy 12(i) (23,400) (30,484)
232,152 192,541
Balance as at 1 January 219,132 207,917Net profit transferred from profit and loss account 232,152 192,541
451,284 400,458Transfer to Statutory Reserve Fund 27 (58,038) (24,068)Final Dividend paid for 2004 of ¢6,674 (2003: ¢6,037) per share (117,445) (106,230)Interim Dividend -Nil (2004: ¢2,900) per share - (51,028)
Balance as at 31 December 275,801 219,132
Earnings per share (cedis per share) 35 ¢13,193 ¢10,942
Proposed dividend per share (cedis per share) 35 ¢11,500 ¢9,574
Net interest income
Operating Income
Operating profit before provision for bad and doubtful debts and taxation
Profit before taxation
Profit after taxation transferred to Income Surplus Account
INCOME SURPLUS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER, 2005
20 Standard Chartered Annual Report and Accounts 2005
Balance Sheetat 31December 2005
2005 2004Note ¢m ¢m
Cash and Balances with Bank of Ghana 14 321,218 418,222Short-Term Government Securities 15(i) 845,503 555,466Due from other banks and financial Institutions 16 789,727 699,893Loans and advances 17 2,160,603 1,636,744Other asset 19 217,392 337,665Taxation 12(ii) 36,560 50,717
4,371,003 3,698,707Medium-Term Investments in other Securities 15(ii) 650,000 557,566Property, Plant and Equipment 18 121,453 141,603
5,142,456 4,397,876
Customer deposits 20 3,254,708 3,076,645Due to banks and other financial institutions 21 463,761 138,871 Interest payable and other liabilities 23 266,337 347,969Deferred taxation 13 19,575 21,695Borrowing 24 489,738 324,629
4,494,119 3,909,809- 45,345
4,494,119 3,955,154
Shareholders' funds
Stated capital 25 131,313 40,405Capital surplus 26 60,270 60,270Income surplus 275,801 219,132Statutory Reserve Fund 27 180,953 122,915
648,337 442,722
5,142,456 4,397,876
Net assets value per share (cedis per share) 35 ¢36,846 ¢25,160
The financial statements as set out on pages 20 to 40 were approved by the Board of Directors on 27 January, 2006 and signed on its behalf by
DIRECTORS
Assets
Total assets
Liabilities
Total current liabilitiesMedium-Term Borrowing
Total liabilities
Total shareholders' funds
Total liabilities and shareholders' funds
EBENEZER ESSOKA FELIX GYEKYE
www.standardchartered.com 21
Cash Flow Statementfor the year ended 31 December 2005
2005 2004Note ¢m ¢m
28(a) 179,160 308,186
Dividend paid (117,445) (157,258)
Taxes paid (110,163) (135,454)
Purchase of property, plant and equipment (5,527) (6,256)Proceeds from sale of property, plant and equipment 88 - Items released 1,154 284
(4,285) (5,972)
Proceeds from issue of preference shares 90,908 -
Repayment of subordinated debt (45,345) -
45,563 -
28(b) (7,170) 9,502
Net cash inflow from operating Activities
Returns on investments and servicing of finance:
Taxation:
Investing activities:
Net cash outflow from investingActivities:
Financing Activities:
(Decrease)/increase in cash and cash equivalents
22 Standard Chartered Annual Report and Accounts 2005
Notes to the Financial Statementsfor the year ended 31December 2005
1. ACCOUNTING POLICIES
a. Basis of Accounting
b. Foreign Currency
c. Interest Income
d. Fee Income
e. Investments
f. Loans and advances
g. Bad and doubtful debts
h. Property, Plant and Equipment
The following accounting policies have been used consistently in dealing with items which are considered material in relation to the Bank's financial statements.
The Bank prepares its financial statements under the historical cost convention as modified by the revaluation of leasehold properties and in accordance with Ghana Accounting Standards.
Assets and liabilities denominated in foreign currencies are translated into cedis at rates of exchange ruling at the balance sheet date. Any profits or losses on translation are dealt with in arriving at the operating profit.
The recognition of interest income ceases when the payment of interest or principal is in doubt. Thereafter, interest is included in income only when it is received. Loans are returned to the accruals basis only when doubt about collectibility is removed and when the outstanding arrears of interest and principal are received.
Loan fees are credited to income when the loans are granted.
Investment in securities redeemable at fixed dates are initially recognised at cost and subsequently adjusted to give effect to amortisation of premiums and discounts on purchase over the period to redemption. Trade investments are stated at cost.
Gains or losses arising from sale of investments or adjustments to the value of investments, are recognised in the profit and loss accounts.
Loans and advances are stated in the balance sheet at the amount of principal and interest outstanding less any provision for bad and doubtful debts and interest held in suspense.
Provisions against loans and advances are based on an appraisal of the loan portfolio and are made having regard to both specific and general risks.
The specific element of the provisions relates to those advances that have been individually reviewed and specifically identified as bad or doubtful. The general element of the provisions relates to those existing losses that, although not yet specifically identified, are known from experience to be present at any year end in the Bank's portfolio of advances. In determining the level of the provisions required, management considers numerous factors including, but not limited to, domestic economic conditions, the composition and performance of the advances portfolio and prior bad debts experience.
Provisions made during the year (less amounts released and recoveries of advances previously written off) are charged as a separate amount in the profit and loss account. Advances are written off when the extent of any loss has been confirmed.
A general provision is also made on net current contingent liabilities (off balance sheet items).
Premises and equipment owned by the Bank are stated at cost or revaluation less accumulated depreciation. Equipment is depreciated on a straight-line basis over its expected useful life principally between 3 to 5 years. Leasehold properties are depreciated over the unexpired period of the lease.
www.standardchartered.com 23
Notes to the Financial Statementsfor the year ended 31 December 2005
Maintenance and repairs are charged to the profit and loss account when incurred, and improvements are capitalised.
The Bank provides for income taxes at the current tax rates on its taxable profits .
Provision is made for deferred tax liabilities using the liability method on temporary differences. Deferred tax assets are recognised to the extent that there is reasonable certainty of realisation.
Events subsequent to the balance sheet date are reflected in the financial statements only to the extent that they relate to the year under consideration and the effect is material.
Dividends are recognised as a liability in the period in which they are declared.
Percentage of gross non-performing loans (“substandard to loss”) to total credit/advances portfolio (gross) is 8% (2004: 15%).
Unsecured contingent liabilities and commitments amounted to ¢ 534,012 million (2004: ¢442,787 million).
An amount of ¢228 million (2004: ¢678 million) was spent as part of social responsibility of the bank
i. Taxation
j Deferred Taxation
k. Post Balance Sheet Events
l. Dividend
2. Non Performing Loans Ratio
3. Unsecured Contingent Liabilities and Commitments
4. Social Responsibility Cost
24 Standard Chartered Annual Report and Accounts 2005
Notes to the Financial Statementsfor the year ended 31 December 2005
2005 2004¢m ¢m
Placements, Special deposits 23,534 15,232Investment securities 214,458 196,867Loans and advances 343,968 267,016
581,960 479,115
Current accounts 1,536 1,256Time and other deposit 107,895 94,822Overnight and call account 27,149 26,725Borrowings 4,050 4,110
140,630 126,913
Gains on foreign exchange 70,433 64,741
Profit on disposal of property, plant and equipment 88 - Rent receivable 11 22
99 22
Staff Cost (Note 10) 134,473 116,014Advertising and Marketing 2,676 6,140Administrative expenses 128,849 109,711Training 5,790 1,840Depreciation 24,523 31,321Directors' emoluments 12,500 11,329Auditors' remuneration 346 300Donations and Sponsorship 964 578Others 17,026 13,316
327,147 290,549
Wages, salaries, bonus and allowances 108,679 96,559Social security cost 11,208 8,902Pension and retirement benefit 488 651Other staff cost 14,098 8,602Severance Pay - 1,300
134,473 116,014
The average number of persons employed by the bank during the year was 600 (2004: 593). Included in this figure is staff of 182 (2004: 188) who work at the Shared Service Centre for processing transactions of six (6) countries in West Africa. For the purpose of analysis, about 54% of transactions processed are for the Ghana Office.
5. Interest Income
6. Interest Expense
7. Other Operating Income
8. Other income
9. Operating Expenses
10. Staff Cost
www.standardchartered.com 25
Notes to the Financial Statementsfor the year ended 31December 2005
2005 2004¢m ¢m
Net Specific credit risk provision 20,793 314General provision for bad and doubtful debts -
On-Balance Sheet 5,209 4,764
Total On-Balance Sheet provision 26,002 5,078
General provision on Off-BalanceSheet items 3,253 1,020
Charge for bad and doubtful debts 29,255 6,098
Current tax [Note 12(ii)] 100,920 68,215Deferred tax [Note 13] (2,120) 13,595
98,800 81,810
National Reconstruction Levy [Note 12(ii)] 23,400 30,484
¢m ¢m ¢m ¢m
2005 (46,211) (79,702) 98,601 (27,312)
2005 9,434 (9,391) 2,319 2,362
(36,777) (89,093) 100,920 (24,950)
2005 (13,940) (21,070) 23,400 (11,610)
(50,717) (110,163) 124,320 (36,560)
The income tax for the year is based on a tax rate of 28% and the national reconstruction levy on a rate of 7.5% of profit before tax.
The tax liabilities up to 2004 have been agreed with the Internal Revenue Service. The tax position for 2005 is subject to the agreement of the Internal Revenue Service.
11. Bad and Doubtful Debts Expense
12. Taxation
12(i).Corporate tax
12(ii).Taxation Payable
Income tax:-
Capital gains tax:-
National reconstruction levy:-
Balance at
1/1/05
Payments during
the yearCharge for
the year
Balanceat
31/12/05
26 Standard Chartered Annual Report and Accounts 2005
Notes to the Financial Statementsfor the year ended 31 December 2005
13. Deferred Taxation
14. Cash and Balances with Bank of Ghana
15. Government Securities
15(i) Short-Term Government Securities
15(ii) Medium-Term Investment in other Securities
16. Due from other banks and Financial Institutions
2005 2004¢m ¢m
Balance at 1 January 21,695 8,100 (Released)/ Charged for the year (2,120) 13,595
Balance at 31 December 19,575 21,695
Cash on hand 80,150 65,568Balances with Bank of Ghana 241,068 352,654
321,218 418,222
Treasury Bills 272,974 10,008Ghana Government Index-Linked Bonds 51,668 252,986Government Bonds 520,861 203,744Other Government Bills - 88,728
845,503 555,466
The Government Bonds consist of Ghana Government fixed and floating rate instruments. The floating rate instruments are benchmarked against the 91 day Treasury Bill rate plus a markup. Included in the Government Bonds are Tema Oil Refinery Registered Bonds with interest rate benchmarked against the 182-day Treasury Bill.
2005 2004¢m ¢m
Government Bonds 650,000 557,566
650,000 557,566
These are fixed and floating Government of Ghana Bonds maturing between 2007 and 2008. The floating rate instruments are bench marked against the 91 day Treasury Bill rate plus a markup.
2005 2004¢m ¢m
Nostro account balances 5,441 8,579Items in course of collection 106,721 97,015Placement with other banks 677,565 594,299
789,727 699,893
www.standardchartered.com 27
Notes to the Financial Statementsfor the year ended 31 December 2005
17. Loans and Advances
(i) Analysis by type
(iii) Analysis by business segments
(iv) Analysis by type of customer
2005 2004¢m ¢m
Overdraft 851,446 803,027Term loans 1,520,926 1,088,815
Gross loans and advances 2,372,372 1,891,842Provision for bad and doubtful debts (114,547) (118,990)Interest in suspense (97,222) (136,108)
Net Loans and advances 2,160,603 1,636,744
The above constitutes loans and advances (including credit bills negotiated) to customers and staff.
(ii) Key ratios on Loans and Advancesa. Loan loss provision ratio is 9% (2004: 13%)b. Gross non-performing loan ratio is 8% (2004: 15%).
c. Ratio of fifty (50) largest exposure (gross funded and non-funded) to total exposures is 68% (2004: 75%).
2005 2004¢m ¢m
Agriculture, forestry and fishing 61,211 83,630Mining and quarrying 11,710 24,198Manufacturing 592,180 707,778Construction 60,466 63,616Electricity, gas and water 65,413 112,168Commerce and finance 525,648 394,871Transport, storage and communication 46,349 68,675Services 23,188 75,527Miscellaneous 986,207 361,379
2,372,372 1,891,842Provision for bad and doubtful debts (114,547) (118,990)Interest in suspense (97,222) (136,108)
2,160,603 1,636,744
Individuals 457,055 340,482Private enterprises 1,258,253 1,313,352Joint private and state enterprises 65,483 34,376Public institutions 495,966 134,297Staff 95,615 68,393Co-operatives - 942
2,372,372 1,891,842Provision for bad and doubtful debts (114,547) (118,990)Interest in suspense (97,222) (136,108)
2,160,603 1,636,744
28 Standard Chartered Annual Report and Accounts 2005
Notes to the Financial Statementsfor the year ended 31 December 2005
(iv) Movement in the Bank's provision for bad and doubtful debts are as follows:
18. Property, Plant and Equipment
18(i) Profit on disposal of Property, Plant and Equipment arose as follows:
2005 2004¢m ¢m
Balance at 1 January 118,990 129,279Increase in provision 26,002 5,078Debts written off (30,445) (15,367)
Balance at 31December 114,547 118,990
LeaseholdAssets in course Land and Furniture & Motor
of construction Buildings Computers Equipment Vehicles Total¢m ¢m ¢m ¢m ¢m ¢m
Cost or valuationAt 1 January 1,154 121,137 114,134 37,031 1,776 275,232Additions 456 156 4,137 778 - 5,527Transfers (456) 456 - - - - Released (1,154) - - - - (1,154)Disposal - - (10) - (223) (233)
At 31 December - 121,749 118,261 37,809 1,553 279,372
DepreciationAt 1 January - 14,590 98,361 19,595 1,083 133,629Charge for the year - 6,108 13,240 4,834 341 24,523Released - - (10) - (223) (233)
At 31 December - 20,698 111,591 24,429 1,201 157,919
Net book valueAt 31/12/05 - 101,051 6,670 13,380 352 121,453
At 31/12/04 1,154 106,547 15,773 17,436 693 141,603
Certain leasehold land and buildings were revalued in September 2002 on the basis of open market value by Messrs. Owusu-Adjapong and Company, a firm of professional valuers, and were incorporated in the books of the bank at 31 December 2002.
2005 2004¢m ¢m
Gross value 233 -Accumulated depreciation (233) -
Net book value - -Proceeds from sale 88 -
Profit on disposal 88 -
www.standardchartered.com 29
Notes to the Financial Statementsfor the year ended 31 December 2005
19. Other Assets
20. Customer Deposit and Current Accounts
20(i). Analysis by type of depositors
21. Due to other banks and financial institutions
2005 2004
¢m ¢m
Accounts receivable and prepayments 28,909 34,569
Accrued interest receivable 62,778 58,031
Impersonal accounts 125,705 245,065
217,392 337,665
Current accounts 1,646,717 1,687,051
Time deposit 396,463 321,868
Savings deposit 952,999 811,160
Call deposit 258,529 256,566
3,254,708 3,076,645
Individuals and other private enterprises 3,234,503 3,004,546
Public enterprises 20,205 72,099
3,254,708 3,076,645
Ratio of twenty largest depositors to total deposit is 16% (2004: 20%).
Inter-bank Balance 62,000 30,000Nostro account balances
401,761 108,871
463,761 138,871
30 Standard Chartered Annual Report and Accounts 2005
Notes to the Financial Statementsfor the year ended 31 December 2005
22. Dividends
3. Interest Payable and other liabilities
24. Borrowing
2005 2004¢M ¢m
Balance at 1 January
Final Dividend (2004) 117,445 106,230Interim dividend (2005) - 51,028
117,445 157,258Payments during the year (117,445) (157,258)
Balance at 31 December - -
The Directors are recommending a dividend of ¢11,500 per share (2004: ¢9,574 per share) amounting to ¢202,354 million (2004: ¢ 168,473 million).
2
2005 2004
¢m ¢m
Accrued interest payable 15,041 10,595
Other creditors and accruals 251,296 337,374
266,337 347,969
Intra group 214,158 49,284
Subordinated Loan 45,580 45,345
Short-term loan 230,000 230,000
489,738 324,629
Subordinated loan represents a foreign currency denominated loan of US$5 million (¢45,345m). Interest is at LIBOR plus 0.75% per annum. This amount was paid off in January 2006.
The short term loan represents borrowing on the local market with interest rate bench marked against the 91 day Treasury Bill rate.
www.standardchartered.com 31
25. Stated Capital
(i) Ordinary Shares
(ii) Preference Shares
Total Stated Capital
26. Capital Surplus
27. Statutory Reserve Fund
2005 2004No of Shares Proceeds No of Shares Proceeds
'000 ¢m '000 ¢m
Authorised
No. of ordinary shares of no parvalue 100,000 100,000
Issued and fully paid
Issued for cash consideration 4,000 4 4,000 4Transferred from income surplusaccount 13,596 40,401 13,596 40,401
17,596 40,405 17,596 40,405
Issued and fully paid
No. of preference shares 17,482 90,908 - -
131,313 40,405
There is no share in treasury and no call or installment unpaid on any share.
The preference shares are irredeemable and non-cumulative.
2005 2004¢m ¢m
Balance at 31st December 60,270 60,270
Balance at 1 January 122,915 98,847Transfer from Income Surplus 58,038 24,068
Balance at 31 December 180,953 122,915
Notes to the Financial Statementsfor the year ended 31 December 2005
32 Standard Chartered Annual Report and Accounts 2005
28. Cash Flow Statement
a) Reconciliation between trading profit and netcash inflow from operating activities
Items not involving cash flow:
Net cash inflow from trading activities
Net cash inflow from operating activities
b) Analysis of changes in cash and cash equivalentsduring the year
c) Analysis of cash and cash equivalentsduring the year
29. Contingent Liabilities and Commitments
2005 2004¢m ¢m
Trading Profit 354,352 304,835
Depreciation 24,523 31,321Exchange Loss - subordinated loan 235 2,220Charge for bad and doubtful debts 29,255 6,098Profit on sale of property, plant and equipment (88) -
408,277 344,474Net increase in investment other than those held for the purpose of trade (382,471) (129,396)
Net increase in loans and advances (549,861) (231,063)
Net increase/(decrease) in other assets 120,273 (115,811)Net increase in customer deposits 178,063 488,700Increase/ (decrease) in amounts due to other banks 324,890 (25,716)Net (decrease)/increase in interest payable and other liabilities (84,885) 22,557Increase/ (decrease) in borrowing 164,874 (45,559)
179,160 308,186
Balance at 1 January 1,118,115 1,108,613Net cash (outflow)/ inflow (7,170) 9,502
Balance at 31 December 1,110,945 1,118,115
Cash and Balance with Bank of Ghana 321,218 418,222Nostro account balances 5,441 8,579Items in course of collection 106,721 97,015Placement with other banks 677,565 594,299
1,110,945 1,118,115
(i) Contingent Liabilities
Guarantees and irrevocable letters of credit 592,665 481,486
Notes to the Financial Statementsfor the year ended 31 December 2005
www.standardchartered.com 33
29. Contingent Liabilities and Commitments Cont'd
30. Related Party Transactions
30(i) Directors, Officers and other employees:
30(ii) Holding Company
Pending legal suits 216 1,373
Commitments for capital expenditure
Under contract 2,395 278
The following are loan balances due from related parties:
2005 2004¢m ¢m
Directors 6,686 4,354Officer and other employees 88,929 64,039
95,615 68,393
Amounts due to the holding company at the balance sheet date were as follows:
2005 2004¢m ¢m
Short term borrowing 214,158 49,284Subordinated Loan (US$ 5 million) 45,580 90,690Other credits outstanding 15,745 9,816
275,483 149,790
The bank has three agreements with the SCB group registered under the Technology Transfer Agreement (LI 1547). The total amount charged to the profit and loss account under these agreements was ¢27,604 million (2004: ¢18,094 million).
Notes to the Financial Statementsfor the year ended 31December 2005
34 Standard Chartered Annual Report and Accounts 2005
3
USD GBP EUR Others 2005 2004¢m ¢m ¢m ¢m ¢m ¢m
Cash and Balances with Bank of Ghana 87,902 8,964 21,902 67 118,835 164,442Due from other banks and financial Institutions 488,401 78,505 19,389 4,965 591,260 603,543Loans and advances 751,336 15,517 95,661 - 862,514 467,261Other assets 3,514 164 646 8 4,332 33,278
Total Assets 1,331,153 103,150 137,598 5,040 1,576,941 1,268,524
Customer deposits 918,255 89,247 97,057 184 1,104,743 1,085,496Due to other banks and financial Institutions 315,442 4,712 34,163 47,444 401,761 108,871Other borrowed funds 45,580 - - - 45,580 139,974Interest Payable and other liabilities 146,625 5,782 9,339 4,213 165,959 90,914
Total Liabilities 1,425,902 99,741 140,559 51,841 1,718,043 1,425,255
Net-On balance sheet position (94,749) 3,409 (2,961) (46,801) (141,102) (156,731)
Off-Balance Sheet Credit Commitments 412,713 7,279 68,395 5,484 493,871 446,662
Total Assets 988,277 93,103 175,446 11,698 1,268,524Total Liabilities (1,151,513) (93,081) (176,068) (4,593) (1,425,255)
Net-On balance sheet position (163,236) 22 (622) 7,105 (156,731)
Off-balance sheet Credit Commitments 381,120 1,077 53,478 10,987 446,662
1. Concentration of cedi equivalent of foreign currency denominated assets, liabilities and off balance sheet items
Assets
Liabilities
At 31 December 2004
Notes to the Financial Statementsfor the year ended 31 December 2005
www.standardchartered.com 35
32. Maturities of assets and liabilities
Assets
0-3 months 3-6 months 6-12months over 1 year 2005 2004¢m ¢m ¢m ¢m ¢m ¢'m
Cash and Balances with Bank of Ghana 321,218 - - - 321,218 418,222Short-Term Government Securities 273,065 680 571,758 - 845,503 555,466Due from other banks and financial institutions 789,727 - - - 789,727 699,893Loans and advances 1,237,690 76,216 42,658 804,039 2,160,603 1,636,744Other assets 192,165 25,227 - - 217,392 337,665Taxation 14,337 14,337 7,886 - 36,560 50,717Medium-Term Government Securities - - - 650,000 650,000 557,566Property, Plant and equipment - - - 121,453 121,453 141,603
2,828,202 116,460 622,302 1,575,492 5,142,456 4,397,876
LiabilitiesCustomer deposits 1,761,881 1,181 800 1,490,846 3,254,708 3,076,645Due to other banks and financial institutions 463,761 - - - 463,761 138,871Interest payables and other liabilities 266,337 - - - 266,337 347,969Deferred taxation - 908 - 18,667 19,575 21,695Borrowing 489,738 - - - 489,738 324,629
Total current liabilities 2,981,717 2,089 800 1,509,513 4,494,119 3,909,809Medium term borrowing - - - - - 45,345
2,981,717 2,089 800 1,509,513 4,494,119 3,955,154
Net liquidity gapTotal Assets 2,828,202 116,460 622,302 1,575,492 5,142,456 4,397,876Total Liabilities (2,981,717) (2,089) (800) (1,509,513) (4,494,119) (3,955,154)
Net Liquidity Gap (2005) (153,515) 114,371 621,502 65,979 648,337
Net Liquidity Gap (2004) (925,447) (220,076) 464,960 1,123,285 442,722
Notes to the Financial Statementsfor the year ended 31December 2005
36 Standard Chartered Annual Report and Accounts 2005
33. Reclassifications
34. Directors' Shareholding
(i) Ordinary Shares
(ii) Preference Shares
35. Number of Shares in Issue
36. Number of shareholders
(i) Ordinary Shares
The 2004 comparative information where necessary has been reclassified to make them consistent with current year's presentation.
The Directors named below held the following number of shares in the Bank as at 31 December, 2005:
2005 2004
Norbert Kwasivi Kudjawu 17,175 17,175
Ishmael Yamson 2,000 -
Henry Gilbert Dei 274 274
Albert Saltson 119 119
19,568 17,568
Norbert Kwasivi Kudjawu 68,775 -
Earnings, dividend and net assets per share are based on 17,596,042 (2004: 17,596,042) ordinary shares in issue during the year.
The company had 4,525 ordinary and 1,022 preference shareholders at 31 December, 2005 distributed as follows:
Number ofRange of shares Shareholders Holding Percentage
1 - 1,000 4,197 889,991 5.061,001 - 5,000 261 531,196 3.025,001 - 10,000 40 308,627 1.75Over 10,000 27 15,866,228 90.17
4,525 17,596,042 100.00
Notes to the Financial Statementsfor the year ended 31 December 2005
www.standardchartered.com 37
36. Number of shareholders Cont'd
(ii) Preference SharesNumber of
Range of shares Shareholders Holding Percentage
1 - 1,000 815 306,641 1.751,001 - 5,000 152 343,535 1.975,001 - 10,000 27 212,678 1.22Over 10,000 28 16,619,413 95.06
1,022 17,482,267 100.00
Notes to the Financial Statementsfor the year ended 31December 2005
38 Standard Chartered Annual Report and Accounts 2005
37(i). Details of 20 Largest Ordinary Shareholders at 31 December, 2005
Name of Number of Percentage (%)Shareholder Shares held holding
Standard Chartered Holdings Africa BV 11,700,644 66.50
Social Security & National Insurance Trust 2,523,708 14.34
BBGN/States street Bank X71 AX 71 329,585 1.87
DM Ventures ITF Goldwyn Trading Company Limited 284,784 1.62
BBG Nom/Chase Manhattan Onshore 277,738 1.58
BBGN/Royal Trust Corporation of Canada 165,000 0.94
BBGN/EPACK Investment Fund Limited 122,868 0.70
Ghana Union Assurance Company Limited 66,234 0.38
Council For University of Ghana Endowment 60,390 0.34
BBG/Unilever Ghana Managers Pension Fund 46,599 0.26
BBG NOM/Unilever Ghana Provident Fund 34,672 0.20
Estate of Late Mr. Francis K. Poku 28,710 0.16
University of Science and Technology 24,750 0.14
National Investment Bank 21,780 0.12
Government of Ghana 21,102 0.12
Norbert Kwasivi Kudjawu 17,175 0.10
Edward Kojo Amoma Anim-Addo 17,000 0.10
Enterprise Insurance Company Limited 16,165 0.09
BBGN/NTHC Horizon Fund 15,016 0.09
Star Assurance Company Limited 14,100 0.08
15,788,020 89.72
Notes to the Financial Statementsfor the year ended 31December 2005
www.standardchartered.com 39
37(ii) Details of 20 Largest Preference Shareholders at 31 December, 2005
Name of Number of Percentage (%)
Shareholder Shares held holding
Standard Chartered Holdings (Africa) BV 15,220,598 87.06
BBGN/STATESTREET BANK X71 AX71 329,585 1.89
SSNIT SOS Fund 307,692 1.76
Ghana Union Assurance Company Limited 99,351 0.57
Edward Kojo Amoma Anim-Addo 97,000 0.55
Kudjawu Norbert Kwasivi 68,775 0.39
Akosa-Bempah Ophelia 54,150 0.31
Akoto-Bamfo Edmund 50,000 0.29
Akosah-Bempah Kwaku 40,654 0.23
MSL Portfolio 38,461 0.22
Boye Ebenezer Magnus 25,000 0.14
Aryee Clifford 25,000 0.14
Minkah Anthony 20,268 0.12
Nyako John Percival Awuku 20,000 0.11
Edem Yankson 20,000 0.11
State Insurance Company Limited Provident Fund 19,231 0.11
State Insurance Co. Limited - General Business 19,231 0.11
NTHC Trading Account 19,231 0.11
State Insurance Company Limited - Life Business 19,231 0.11
Nelson Aruna 19,230 0.11
16,512,688 94.44
Notes to the Financial Statementsfor the year ended 31December 2005
40 Standard Chartered Annual Report and Accounts 2005
I.....................................................................................................................................................................................................................................
(Block Capitals Please)
Of
.......................................................................................................................................................................................................................................
Being Member/Members of STANDARD CHARTERED BANK GHANA LIMITED hereby appoint
.......................................................................................................................................................................................................................................
Of
....................................................................................................................................................................................…..
or failing him the duly appointed Chairman of the Meeting, as my / our Proxy to vote for me / us on my / our behalf at the Annual General Meeting
of the Company to be held at 11.00 am on Thursday, 30 day of March, 2006 and at every adjournment thereof.
Please indicate with an X in the spaces below how you wish your votes to be cast.
RESOLUTION FOR AGAINST
1. Declaring a dividend
2. Re - electing the following Directors - Mr. Simon Millett
- Mr. Albert Saltson
- Mr. Samuel Daisie
- Mr. Henry Dei
3. Approving Directors’ remuneration
4. Approving the remuneration of the Auditors
Signed this............................ day of ................................2006 Signature.........................................................
IMPORTANT: Before posting the Form of Proxy above, please tear off this part and retain it - see over. If you wish to insert in the blank space
on the form the name of any person, whether a Member of the company or not, who will attend the meeting and vote on your behalf, you may
do so; if you do not insert a name, the Chairman of the Meeting will vote on your behalf. If this Form is returned without any indication as to how
the person appointed a proxy shall vote, he will exercise his discretion as to how he votes or whether he abstains from voting. To be valid, this
Form must be completed and must reach the Registered Office of the Company not less than 48 hours before the time fixed for holding the
Meeting or adjourned Meeting.
This Form is only to be completed if you will NOT attend the Meeting
Form of Proxy
CUT HERE CUT HERE
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The SecretaryStandard Chartered Bank, Ghana LimitedHead OfficeP. O. Box 768, Accra
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PLEASEAFFIXSTAMPHERE
THIRD FOLD HERE
CUT HERE CUT HERE
IMPORTANT: A person attending the meeting should not produce this form