Botswana’s oldest bank Standard Chartered Bank this week released a record half year results in which profits rose 20% to stand at P33.1 million for the six months ending June 30 2019.
Following the launch of refreshed strategic priorities in February this year, the bank has enjoyed a steady progress in transforming the overall business operations.
“Our interim consolidated Profit before Tax grew by 20% to P33.1 million as we continue to embed efficiencies across our business model. This is despite a 5% drop in top lines which come on the backdrop of our strategy to pursue high quality income,” bank said in statement.
The growth in profitability was segment wide, with a great run on corporate, commercial and institutional banking segment’s non-funded income which registered a 17% increase over the last period.
Stanchart bank Chief Executive Officer, Mpho Masupe has expressed delight saying the refreshed turnaround strategy to transformational is paying off. He said the positive results allow them to now be bolder and quicker in their roll out of products and services to the market.
“We have already proven this, in the first half of 2019, we have augmented our Personal Loan Offering by increasing limits to a market-first of P600 000 with a record levels of uptake from within the market,” Masupe said, adding that partnerships with key industry players paid off too.
Some of the strategic elements that the bank achieved under the 2019-2024 refreshed strategy includes setting up of US Dollar dispensation ATMs so as to give customers diversity. The optimistic Masupe also said the bank continues to maintain its credibility through assuring safe financial system for 122 years and beyond of doing business in Botswana.
Chief Financial Officer, Dr Mbako Mbo said after the bank posted significant losses in 2017 the positive 2019 half year results are motivating in a tough banking sector.
The bank registered P66.5 million losses in 2017 due to the heavy impairments from clients in the diamond industry. He said the losses that the bank incurred in 2017 was challenging to correct them, as it takes a lot of time and strategic thinking to revive the profits.
Dr Mbo attributed the positive financial perfomance to the efficient reduction of operating costs by 14%, saying that it has boosted other crucial business operations that suffered before.
“Profitability is not yet at the levels that the bank expects, but we can confidently say that the fundamentals have been well secured,” said Dr Mbo.
The bank realised total balance sheet growth of 8% increase, capital adequacy went up by3.4%, retail banking, and the bank’s largest segment has registered 5% growth driven by loans and advances to the customers. The bank has declared an 8 Thebe dividend per share.