Stanbic Bank Botswana closed the year 2023 on a high note with P484 million profit reflecting nine percent growth as compared to P444 million that was achieved in 2022, the bank has revealed in its 2023 annual report. The Bank Chief Executive (CE) Chose Modise said despite the economic headwinds, they are delivering on their objectives of diversifying revenue through non-traditional banking services, optimising the balance sheet and improving margins.. “Our sense of resolve manifests clearly in our financial results for 2023. I am pleased to report a 9.0% increase in profit after tax, up from P444 million in 2022 to P484 million in the 2023 reporting period,” said Modise. Modise also said one year into their newly launched Letsema 2025 corporate strategy, the bank’s proactive revenue generation models are bearing fruit: with topline revenue having increased by 16.7%.
At the same time, he said their focused cost optimisation philosophy has earned them a Cost-to Income Ratio of 52.8%, lower than 58.3% in 2022. This kind of performance would not be possible without the delivery of consistently exceptional client experiences. It is an assertive message that we are in touch with our clients’ needs and that our strategy is delivering on its promises. It is also an affirmation that our culture and strategy are in sync,” he added. For her part, Chief Finance and Value Management Officer- Realeboga Phoi said as a result of the review of the operating model, the bank’s balance sheet grew by 4.2%, led largely by a restructure of deposits which saw a 3.6% growth and loans and advances to customers increasing marginally by 0.5%.
“2023 presented us with a liquidity-constrained environment, however the bank’s focus on financial literacy, attracting younger clients and the informal sector – via the Youth Account, Unayo and the enhanced self-service channels – resulted in a noticeable growth in household deposits Phoi added. Phoi also said the bank’s balance sheet structure comes from its focus on risk management and prudent utilisation of its liquidity pool, also evidenced by a growth in financial investments by 26.1%.
In addition, she said the Corporate and Investment Banking (CIB) in 2023 posted a profit of P263 million (2022: P195 million) a 34% growth year on year largely attributable to balance sheet optimisation strategies as well as a continued improvement in asset book credit risk management excellence. “The bank’s loan
to deposit ratio improved from 71% to 69% in 2023. The bank’s leadership, through its Assets and Liabilities Committee (ALCO), is charged with the management of liquidity. “Our technology enhancements make it easier for clients to access our products and services, playing a key role in the maintenance of liquidity,” emphasized Phoi.
Phoi also noted that their operating expenses grew by 5.6%, largely driven by a once-off 19.4% growth in staff costs at the back of the redesign exercise that the bank embarked on.