Published: 02 April 2014

Stanbic Bank Zimbabwe weathered the harsh economic environment to record a $18,3 million profit after tax for the year ended December 31 2013 up from $17,2m for the comparative period in 2012.

In a statement accompanying results for the year ended December 2013, Stanbic Bank Zimbabwe chairman, Sternford Moyo said the challenging environment weighed down on the performance of the bank.

Moyo said fees and commission income grew by a marginal 5%, being a reflection of the reduction in charges in line with the implementation of the Memorandum Of Understanding between banks and the Reserve Bank of Zimbabwe ("RBZ"), compounded by the slowdown in the level of economic activity that prevailed throughout the year.

Fees and commission income contributed 38% of the Bank's total income of $79m. Stanbic Bank recorded a 13% growth in its lending book from $229m as at the end of December 2012 to $258m, resulting in a 9% increase in net interest income.

Stanbic Bank's operating expenses were 13% higher than the prior period mainly driven by the increase in the deposit protection insurance and other operating expenses.

Moyo said Stanbic Bank's capital for accounting purposes stood at $66m against the regulatory minimum of $25m.

While the Sub-Sahara region enjoyed a 5% growth, Zimbabwe's economic growth momentum significantly slowed down in 2013, to an estimated 3,4% on the back of a plethora of challenges such as limited long term capital and constrained lines of credit; power shortages; uncertainty on key policies such as the implementation of the Indigenisation and Economic legislation and competition from imports.

Other challenges that were key impediments to growth included low agricultural output that exposed the country to imported inflation; tight market liquidity; and lack of a vibrant interbank
market which inhibits lending by banks.

"The global economic environment remained challenging in 2013 and the emerging markets such as the Sub-Sahara Africa felt the negative effects of the continued global slow-down to
an extent greater than many had anticipated," said Moyo.
- Zim Mail

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