Stanbic Bank Zimbabwe’s net earnings were 30% up to $27,6 million last year from the $21,2m realised in 2016 due to the good returns on the various interest earning instruments that the bank has invested in.
BY BUSINESS REPORTER
In a statement accompanying the financial results, board chairman Greg Sebborn said income earned from the growing transaction volumes on the various innovative electronic channels that Stanbic Bank offered as well as good recoveries on previously downgraded facilities contributed significantly to the bank’s performance.
“Despite these challenges in the macroeconomic environment, the bank continued to sustain growth in profitability, closing the year with a profit after tax of $27,6m which was 30% ahead of the prior period profit-after-tax of $21,2m,” Sebborn said.
As at December 31, 2017, Stanbic Bank’s qualifying core capital stood at $134,3m, up from $106,6m in 2016, against the regulatory minimum of $25m.
This is more than the $100m threshold set for the year 2020.
Stanbic Bank chief executive, Joshua Tapambgwa said it was pleasing that the bank had defied various economic challenges which included, among others, the unbearable cash and foreign currency shortages.
Tapambgwa said a 17% growth was recorded in the bank’s net interest income which increased to $55,1m last year from $47,2m in 2016 bolstered mainly by the additional short term investments which were acquired during the year.
Fee and commission income deteriorated to $32,6m last year from $33,5m in the prior year, as the increased surrender requirements on platinum and chrome exports had a negative impact on the volumes of customer foreign payments which the bank could process as nostro reserves remained depleted.
“The charge for credit impairments for 2017 was $2,1 million having declined from $8,4 million in 2016 as the bank’s enhanced collection efforts on non-performing loans and reduced written off facilities continued to bear positive results,” Tapambgwa said.
Total operating expenses increased by 12% to $64,1m last year from $57,5m in the prior year attributed to business expansion as the bank rolled out new products into the market as well as extending its digital channels customer offering.
Stanbic Bank’s net lending book was up 21% to $330,4m last year from $273,5m largely driven by new assets, which were written combined with the increase in facility utilisation by some counterparties who required local funding for working capital purposes.
The bank’s customer deposit base was $1,2 billion last year up from $701m in 2016.
As the country remained crippled by chronic foreign currency shortages, the bank’s customer deposit base increased from $701m in 2016 to close the year at $1,2 billion as depositors failed to utilise their funds for settlement of foreign obligations.