Standard Chartered reports record Q1 performance in MEA region

Standard Chartered has delivered a strong performance in the Africa and Middle East region in the first quarter of 2022. The bank’s underlying profit before tax increased 5 per cent on a constant currency basis, while income grew 11 per cent on a constant currency basis.

The bank reported robust growth across major markets such as UAE, Pakistan, Kenya, Ghana and Saudi Arabia.

The bank also reiterated its plans for refocusing and simplifying its presence in the region as part of its next phase of growth.

Read: StanChart plans to exit seven markets in Africa, Middle East

The bank reported strong growth in income, and delivered the highest quarterly operating profit in nearly a decade in the region.

Performance highlights include a robust growth in operating profit of 59 per cent, with operating profit for a single quarter crossing $300m for the first time in nearly a decade. There was a significant improvement in the region’s return on tangible equity (ROTE) ratio, to 13.2 per cent.

Income growth of 16 per cent, at constant currency, was driven by broad-based growth across products. Cost discipline continued, resulting in income-to-cost jaws (the extent to which a trading entity’s income growth rate exceeds its expenses growth rate) of 9 per cent.

Sunil Kaushal, regional CEO, Africa and Middle East said: “Following a record financial performance across Africa and the Middle East in 2021, I am extremely proud to share that we have achieved another record performance in the first quarter of the year. This growth has been a result of the hard work and commitment of our team coupled with the execution of some tough decisions we made to drive efficiencies and reduce risk. This outstanding performance was primarily driven by 16 per cent growth in income broad based across our key markets, and strong cost focus, which has resulted in a robust growth in operating profit of 59 per cent.

“As we move forward, the region is focused on executing swiftly against the bank’s strategy to drive our next phase of growth, while seamlessly simplifying our presence. We are excited about the scale of opportunities across the region, such as Egypt and Saudi Arabia and continue to invest in digital capabilities across the region.”