Stanbic Bank Zimbabwe Ltd reported a US$12,8 million profit in the half year to June 30 (H117) from US$10,5 million thanks to better interest income and a push to drive electronic payments.
Stanbic Bank Zimbabwe chairman Greg Sebborn attributed the strong performance to better net interest income buoyed by additional short-term investments acquired in period under review. Strengthened collection efforts on non-performing loans also contributed significantly, he added.
“Notwithstanding the elevated turbulence in the macro-economic environment, the Bank recorded a commendable performance closing the first half of the year with a profit of US$12,8m in comparison to the prior period profit of US$$10,5m. Non-funded income also performed strongly as the Bank continues to drive various electronic means of payment as the market continues to embrace the digital platforms,” said Sebborn.
As at 30 June 2017, Stanbic Bank’s qualifying core capital stood at US$119,5m up from US$95,3m in June 2016. The regulatory minimum is US$25m.
The US$119,5m qualifying core capital puts Stanbic Bank in a healthy position ahead of the 2020 regulatory minimum core capital of US$100m.
Stanbic Bank, a subsidiary of Standard Bank Group of South Africa, will remain compliant with capital requirements after IFRS 9 becomes effective on 1 January 2018.
Sebborn noted that The International Monetary Fund and the World Bank projected the Zimbabwe economy to grow by an estimated 3% in 2017 compared to a modest growth of 0,6% in 2016.
He said Stanbic Bank continues to maintain high standards of corporate governance, ensuring that its conduct is above reproach.
Stanbic Bank CE Joshua Tapambgwa was pleased that the institution overcame the increasing vulnerabilities in the economic environment. Tapambgwa said net interest income of US$25,5m grew by 11% from US$23,1m as additional short-term financial investments were acquired during the period under review.
The growth in net interest income was partially offset by the temporary fluctuations in facility utilisation such as the deterioration in the volume of cash transactions and outgoing customer foreign payments, a development which saw bank fees and commission income decline by 4%.
Tapambgwa said Stanbic Bank is focussed on ensuring that the lives of its customers are made easier as they navigate an increasingly difficult operating environment as evidenced by the continued digital banking journey in a cash-starved environment, where Stanbic Bank rolled out more point-of-scale devices into the market.
“Our digital banking product suite was enhanced through the addition of more billers on our Blue247 mobile banking platform compounded by the introduction of new products such as Online Banking for Small to Medium Enterprise clients.” — Staff Writer.