BY TATIRA ZWINOIRA
STANDARD Chartered Bank Zimbabwe (Stanchart) has posted a 38% increase in profit-after-tax to US$18,36 million in the full year ended December 31, 2018, driven by the bank’s digitisation strategy.
The increase in the profit-after-tax for 2018 was from a previous of US$13,32 million earned over the comparative 2017 period.
“The bank achieved a profit-after-tax of US$18,4 million for the year-ended December 31, 2018, a significant improvement compared to the USD13,3 million achieved in the previous year. Our strategy of digitising the banking platforms is beginning to bear fruits through operational efficiencies and a reduction in costs,” said Stanchart chairman Lovemore Manatsa, in a statement accompanying the results yesterday.
“To align with the latest digital trends and to deliver on one of its strategic priorities, Standard Chartered Bank Zimbabwe is scheduled to roll out its first retail digital banking platform in Q2 2019 to give clients freedom of self-service on their electronic devices.”
Non-performing loans ratio was down to 1,2% from 2,8% in the previous year.
Non-interest income declined by 11,33% to a US$30 million from US$33,8 million in 2017, while net interest income increased to US$39,11 million from US$29,02 million.
This was despite a drop in loans and advances of nearly 9% to US$139,23 million from US$152,89 million.
The loans and advances continued to be dominated by individual loans which took 48% of the segment, up six percentage points over the 2017 figure.
Operating expenses were marginally flat at US$45,04 million.
“The balance sheet remains strong and highly liquid compared to the minimum regulatory requirements. The bank is confident of meeting the target core capital of USD100 million by December 31, 2020,” Manatsa added.