STANBIC Bank has posted an 18,8% growth in after-tax profit to $9,6 million for the half-year ended June 2014 due to increase in net interest income.
In 2013, the bank recorded $8 million.
The group recorded an increase in income to $39,3 million during the period under review from $36,8 million, while its assets grew by 4% to $494,9 million.
Net interest income was up 11% to $18,2 million during the period under review.
Credit impairment charges were up by 59% to $2,4million.
In a statement accompanying the group’s unaudited financial statements for the half-year ended June 30 2014, Stanbic Bank chairperson Sternford Moyo said fee and commission income increased by 9% driven by growth in the customer base.
There was also growth in the value of assets under custody to $1,1 billion at June 2014 from $959 million at June 2013 as new customers were acquired.
“In the outlook to December 2014, the overall economic performance is projected to remain sluggish as government is highly constrained by the lack of funding to enable it to effectively formulate and implement sustained policy interventions.
“However the bank will remain profitable and adherence to the laws of the country,” Moyo said.
In the period under review, fee and commission contributed 40% of the bank’s total income of $39,3 million.
The bank’s gross loans and advances book temporarily declined by 3% to $250 million from $258 million at the end of December 2013 as some of the large exposures matured and were fully repaid during the period under review.
“The bank is at an advanced stage of replacing these matured loans with other quality earning assets which will ensure optimal utilisation of available financial resources.
“A conservative approach to lending has become necessary in order to safeguard depositor’s funds and maintain the banks quality lending book,” he said.
During the period under review operating expenses were 5% higher than the prior period due to the increase in transaction process costs, mainly driven by the
costs incurred in repatriating soiled notes and importing new notes.