Stan­bic Zam­bia’s Quar­terly Earn­ings Leap Re­mark­ably by 66%

Zambian Business Times - - FRONT PAGE -

STAN­BIC Bank Zam­bia’s quar­ter on quar­ter earn­ings re­mark­ably leaped by 66% to ZMW83.17mil­lion from ZMW50.13mil­lion in Q2 bring­ing its YTD earn­ings to ZMW189.977mil­lion. The ZMW10bril­lion bal­ance sheet was able to gen­er­ate an an­nu­alised Re­turn on Eq­uity – ROE of 19.66% com­pared to 17.4% in the pre­vi­ous quar­ter.

Key driv­ers of the banks stel­lar per­for­mance QoQ was as­set growth which gave an adren­a­line boost to the in­ter­est in­come lines which rose 6% to ZMW293.87mil­lion and trad­ing rev­enues which rose by 8.8% to ZMW74.46mil­lion. This was off­set by a 38.77% lean­ing of credit im­pair­ments and a 34% de­cline in in­ter­est paid on de­posits. The bank has demon­strated mar­ket lead­er­ship in its for­eign ex­change and trad­ing in­come lines which grew by 8.8%.

“This per­for­mance is baro­met­ric indica­tive of a bank that has suc­cess­fully weath­ered the storm af­ter the 2016 liq­uid­ity crunch that cost the bank ex­pen­sive de­posits.

To see the bank with an in­ter­est paid line on de­posits de­creas­ing by 34% to lev­els of ZMW 80mil­lion means most ma­tur­ing costly de­posits have fallen off the books al­low­ing for repric­ing in this in­ter­est rate fall­ing en­vi­ron­ment. Quar­ter three per­for­mance de­picts a very strate­gic ap­proach to­wards as­set growth and credit risk man­age­ment. At this rate, we fore­cast to see a big­ger come back and stronger fin­ish for the year in Q4.”

The bank was re­cently awarded a judge­ment against a client Savenda Man­age­ment Ltd that saw the bank spared from pay­ing $20mil­lion (Kwacha equiv­a­lent in dam­ages). This was seen as a con­fi­dence booster to com­mer­cial banks in cir­cum­stances that could have sent shiv­ers to fi­nan­cial in­sti­tu­tions in the area of tak­ing risk. The ju­di­ciary were seen to make a judge­ment in the best in­ter­ests of the bank­ing sec­tor as driver of eco­nomic growth. Savenda have been given the right to ap­peal to the Supreme Court.

“Stan­bic Bank Zam­bia com­mends the ju­di­ciary for en­sur­ing that jus­tice has been served. The judg­ment puts the bank­ing in­dus­try back on track af­ter a pe­riod of un­cer­tainty, and with the re­cent Bank of Zam­bia re­duc­tion in base lend­ing rates, bor­row­ing is now be­com­ing more af­ford­able,” said Stan­bic Bank Act­ing Chief Ex­ec­u­tive He­len Lubamba, who urged cus­tomers who were hav­ing prob­lems meet­ing loan re­pay­ments to ap­proach the bank for help.

Stan­bic Bank is a bank that has made a foot­print in min­ing, agri­cul­ture, con­struc­tion and the small to medium sized en­ter­prise sec­tors.

Stan­bic Bank Head Of­fice on Ad­dis Ababa drive in Lusaka

Newspapers in English

Newspapers from Zambia

© PressReader. All rights reserved.