EARNINGS for the six months to June for Stanbic Bank — a member of South Africa-headquartered Standard Bank — were up 23% to $8 million driven by growth in net interest income.
REPORT BY BERNARD MPOFU,ACTING BUSINESS EDITOR
Fee and commission income, according to the bank’s chairperson Stenford Moyo, grew by a marginal 1% to $14,4 million due to a reduction in bank charges following the implementation of the memorandum of understanding (MoU) between banks and the Reserve Bank of Zimbabwe.
Under the MoU signed in February, banks, with effect from last February, now charge up to 0,5% of the cash withdrawal amount subject to a minimum charge of $2,50, while ledger fees, maintenance and service fees now cost up to $4 per account. The central bank and the bankers also agreed to push for the mandatory use of debit cards.
Automated teller machines (ATMs), according to the MoU, now attract a withdrawal fee of $2.
Experts say failure by the Reserve Bank to play its role as lender of last resort had also had an impact on the cost of lending, adding that banks were currently borrowing hot money offshore for on-lending to key economic sectors.
“The bank grew its loans and advances book by 7% from $229 million as at December 2012 to $244 million, resulting in the 4% increase in net interest income,” Moyo said.
“The bank’s operating expenses were 5% higher than the prior period mainly driven by the 1400% increase in Depositor Protection Corporation premiums from an annual amount of $120 000 in 2012 to around $1,8 million for 2013.”
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Fee and commission income contributed 39% of the bank’s total earning of $36,9 million. Interest income is interest received on loans to customers or otherwise invested. Fees and commission are earned on banking transactions processed through various channels such as branches, ATMs, telephone banking, Internet banking and point-of-sale devices. Banks also earn those fees from corporate advisory services and custody business.
Despite reporting an increase in operating costs, staff costs marginally decreased to $10,7 million.
