Standard Bank, the parent company of Stanbic Bank Ghana Limited, has announced that it is setting aside $81 million to Cover Potential Losses that the subsidiary may suffer from Ghana's recently concluded domestic debt restructuring program (DDEP).

The move comes as Ghana's government restructured ¢83 billion ($6.8 billion) of local debt, leading to potential losses for banks in the country. Standard Bank has also said that it is ready to recapitalize its Ghanaian unit, in addition to making provisions to cover more than half of its holdings in the nation's debt.

According to Bloomberg, Standard Bank's $81 million provision will cover potential losses arising from the West African nation's loan-restructuring program. The bank's total holdings of both domestic and onshore dollar-denominated bonds is approximately 2.6 billion rand.

Standard Bank's CEO, Sim Tshabalala, praised the government of Ghana for its “textbook” approach to the restructuring, stating that it had “extracted the appropriate bargain from all stakeholders.” However, Tshabalala acknowledged that the process had been painful for holders of that debt.

Despite the challenges posed by Ghana's debt restructuring program, Standard Bank remains committed to the country. It plans to leverage its “fortress balance sheet” to drive market share and capitalize on growth opportunities when they arise.

Standard Bank's headline earnings for the year ending in December 2022 surged 37% to a record 34.25 billion rand, beating forecasts. The bank declared a final dividend of 6.91 rand per share, representing a payout ratio of 60%.