Stanchart profit rises 11%

Published: 01 September 2017

STANDARD Chartered Bank Zimbabwe (Stanchart) says profit for the half year to June 30, 2017 rose 11 percent to $6,8 million compared to $6,1 million recorded during the same period in the prior year.

Chairman Mr Lovemore Manatsa attributed the increase to the banks' cost and credit loss containment measures. These, he said, "countered the slow revenue momentum occasioned by the prevailing challenging operating environment."

Total operating income increased to $30,3 million from $27,1 million while operating expenses remained lower despite increasing to $20,62 million from $19 million during the same period in the prior year.

Interest income increased to $13,51 million compared to $10,21 million last year and with the bank paying very little in interest expense at $154 800 from $234 526, net interest income was almost similar at $13,3 million.

In April this year, the Reserve Bank of Zimbabwe (RBZ) lowered interest rates to productive sectors of the economy as part of its measures to promote economic growth and promote exports.

Unlike other banks, which recorded growth in non-funded income, Stanchart recorded a decline in fees and commission to $16,89 million from $17,16 million registered in the same period last year.

"The bank's balance sheet remains strong with capital levels well above the minimum regulatory requirements.

"The bank is confident of meeting the target core capital of $100 million by 31 December 2020," said Mr Manatsa.

Total assets jumped 39 percent to $626,974 million.

Going forward, Mr Manatsa said the bank will continue to leverage on its strong global presence in high growth markets while maintaining its premium brand status in Zimbabwe as well as its focus on Asia, rest of Africa and the Middle East markets.

He added more investment would be channelled towards digital platforms. Sector-wide, the banking industry has been emphasising on use of electronic banking following cash shortages that hit the country early last year.

The RBZ has also encouraged use of plastic money to ease pressure on the limited available cash.
- the herald

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