Standard’s net interest income rises

STANDARD Bank said yesterday that credit impairments were increasing, but net interest income after impairments represented “pleasing growth” over last year in the four months to April.

It released an update on the group’s performance at its annual general meeting yesterday, where all the resolutions were adopted.

Nonexecutive director Cyril Ramaphosa resigned from the board in line with the review of his business interests following his election as deputy president of the African National Congress in December.

Other banks have also reported rising credit impairments. Analysts have said that large banks, with welldiversified sources of income, are unlikely to be as affected by credit impairments from unsecured loans, when compared with institutions that have unsecured lending as a major source of their business.

Standard’s share price rose by up to 1.2% to R111.33 on the JSE late yesterday, while the bank sector index was up 0.74%.

The bank’s net interest income was supported by higher average balances flowing from balance sheet growth and positive repricing in the personal and banking unit in the four months to April, the group said.