Leading financial services institution, Stanbic Bank Zimbabwe has posted a $12,8 million profit for the half year to June 30, 2017, up from $10,5 million in the comparable period last year.
BY BUSINESS REPORTER
Stanbic Bank Zimbabwe chairman, Greg Sebborn attributed the competitive set of results to better net interest income buoyed by additional short-term investments acquired during the period. Sebborn said strengthened collection efforts on non-performing loans also contributed significantly.
“Notwithstanding the elevated turbulence in the macro-economic environment, the bank recorded a commendable performance closing the first half of the year with a profit of $12,8m in comparison to the prior period profit of $10,5m. Non-funded income also performed strongly as the bank continues to drive various electronic means of payment as the market continues to embrace the digital platforms,” Sebborn said.
As at June 30, 2017 Stanbic Bank’s qualifying core capital stood at $119,5m up from $95,3m in June 2016 and well-above the regulatory minimum of $25m.
The $119,5m qualifying core capital puts Stanbic Bank in a healthy position ahead of the year 2020 regulatory minimum core capital of $100 million.
Sebborn said Stanbic Bank continues to maintain high standards of corporate governance, ensuring that its conduct is above reproach.
Stanbic Bank chief executive, Joshua Tapambgwa said the institution overcame the increasing vulnerabilities in the economic environment to do well.
Tapambgwa said net interest income of $25,5m grew by 11% from $23,1m as additional short term financial investments were acquired during the period under review.
The growth in net interest income was partially offset by the temporary fluctuations in facility utilisation such as the deterioration in the volume of cash transactions and outgoing customer foreign payments, a development which saw bank fees and commission income declining by 4%.