STANDARD Chartered Bank Zimbabwe posted a 13,04% jump in profit after tax to $6,83 million for the half-year period, on the back of cost and credit loss containment initiatives in response to the slow revenue growth.
BY TATIRA ZWINOIRA
This jump in profit after tax was from a previous of $6,05 million recorded over the same time frame last year.
Net interest income increased by 33,76% to $13,35 million during the period under review from $9,98 million in the comparable period in 2016 comparative, despite decreased lending to customers.
In a statement accompanying the results for the half year ending June 30, Standard Chartered Bank Zimbabwe chairman, Lovemore Manatsa said the cost and credit loss containment initiatives were to combat the revenue performance due to the economic climate.
“This performance [profit after tax] was achieved on the back of cost and credit loss containment initiatives which countered the slow revenue momentum occasioned by the prevailing tough operating environment. The bank’s balance sheet remains strong with capital levels well above the minimum regulatory requirements,” he said.
“The bank is confident of meeting the target core capital of $100 million by December 31, 2020.”
Total revenue grew to $30,14 million in the period under review which was 13,32% up from $26,59 million recorded over the same time frame in 2016.
Non-interest income for the bank was at $16,78 million at the end June, from $16,61 million in the same period last year.
Deposits from customers jumped by 49,45% to $510,46 million in the period under review from a comparative 2016 half year of $341,56 million showing customers continued to have confidence in the bank.
However, while deposits increased, loans and advances to customers dropped 20,33% to $108,29 million in the first half of the which was down from $135,94 million recorded at the end of June 2016.
The bank reduced non-performing loans to $803 421 from $2,08 million recorded at the end of June 2016 and increased shorter term loans.
Standard Chartered Bank Zimbabwe reported a drop of 54,4% in cash and balances with banks to $19,14 million at the end of period from 2016’s comparative period of $41,98 million showing customers may continue to face some challenges in withdrawal.
Cash and cash equivalents grew to $288,17 million in the period under review from $184,45 million in the comparable period last year.
Total liquid assets grew by 75,33% to $477,36 million at the end of June from $272,25 million recorded over the same time frame in 2016.
Manatsa said delivering superior digital platforms and driving digitisation agenda remained a key focus area of the bank for the remainder of the year.
The bank’s capital and reserves grew to $78,11 million at the end of June up from $71,82 million recorded over the same frame in 2016.
Overall assets grew to $626,97 million for the period under review which was up from $448,24 million recorded in the same period last year due to an improvement in the bank’s liquidity position.