STANBIC Bank Zimbabwe (Stanbic) registered a 15% profit growth to US$23,9 million in 2015 compared to the same period in the prior year despite the tough economic environment.
In a statement attached to the bank’s financial results for the year ending December 2015, Stanbic chairman Sternford Moyo said the bank — whose parent company is South Africa’s Standard Bank Group which operates around the world, including 17 countries in Africa — had managed to register a profit in an adverse economic environment characterised by a debilitating liquidity squeeze, company closures and job losses.
“The bank’s profit for the year of US$23,9 million increased by 15% from the US$20,7 million achieved in the same period last year despite the increasingly challenging economic environment.
“Net interest income at US$42,8 million grew by 11% from the previous period largely because of the additional short term investments and lending assets which were written during the year,” Moyo said.
He said the bank’s gross lending book grew by 8% to US$272 million due to the increase in facility utilisation by customers and the creation of new interest earning assets. The cost-to-income ratio for the bank improved to 57% from 60% for the same period last year driven by the 4% growth in total income to US$88 million.
Moyo said the bank’s core capital stood at US$84,9 million against the regulatory minimum of US$25 million, adding the bank remains on course to meet the regulatory requirement of US$100 million by 2020.
He noted that the operating environment in 2015 remained challenging with a growth rate of 1,5% which was below the average Sub-Saharan growth rates of around 4% to 5%.
Moyo said the country’s economic growth prospects remain weak due to the El Nino weather conditions, continued decline of international commodity prices and low internal demand.
“We are comfortable that Stanbic Bank Zimbabwe will achieve its 2016 targets despite the challenges faced by the economy,” Moyo said.