Stanbic posts H1 profit of $16,4 million

STANBIC Bank Zimbabwe has posted a profit after tax of $16,4 million in the six months period to June 30, 2018, overcoming the increasing vulnerabilities in the macroeconomic environment.

The impressive set of results has seen Stanbic Bank surpass the previous year’s first-half performance in which it posted a $12,8 million profit. In the comparable period in 2016, Stanbic Bank recorded $10,5 million. The trend shows a steady, consistent and solid growth each year for the Standard Bank subsidiary.

In a statement accompanying the results, Stanbic Bank chairman, Gregory Sebborn, said the bank achieved a qualifying core capital of $138,4 million as at June 20, 2018, up from $119,5 million from the same period last year. The $138,4 million is well above the regulatory minimum of $25 million and the year 2020 regulatory minimum core capital of $100 million.

The chairman said Stanbic Bank remains compliant with regulatory requirements and this has seen, among other issues, the implementation of IFRS 9 on January 1, 2018. The bank continues to maintain high standards of corporate governance, ensuring that its conduct is above reproach, he said.

“During the period under review, the bank complied with all regulatory requirements and central bank directives, in all material respects,” said Sebborn.

Stanbic chief executive, Joshua Tapambgwa, said it was encouraging to see the bank overcoming the increasing turbulence in the operating environment.

He said a 28 percent growth was recorded in net interest income, closing the period at $32,6 million, a development attributed to the acquisition of additional short-term investments undertaken during that period.

“This commendable growth was largely underpinned by the acquisition of additional short-term investments together with new lending assets, which were written in the period,” said Tapambgwa.

The bank’s fee and commission income grew by 20 percent to $18,1 million largely buttressed by a surge in transaction volumes, which were processed on digital channels following the unbearable cash shortages in the market cushioned by increasing digital capabilities.

Meanwhile, the expected credit loss allowances increased by 284 percent to $9,4 million primarily driven by the implementation of IFRS 9 financial instruments, which saw credit losses being recognised on financial investments and off-balance sheet items.

The bank’s total operating expenses of $34,6 million increased by 16 percent from the comparative period largely because of the execution of business expansion projects during the period as the bank continues to enhance its digitisation and innovation pace in a highly evolving environment.

Tapambgwa said Stanbic’s corporate and social investment (CSI) commitments have been focused on creating long-lasting impact in the communities in which it operates.