Stanbic complies with RBZ demands

HARARE - Stanbic Bank has surpassed the new Reserve Bank of Zimbabwe’s (RBZ) phased recapitalisation requirements by recording capital of $35,7 million as at half-year to June 30.

According to the RBZ, all banks are expected to have at least 25 percent of the new prescribed levels for its class by December this year, 50 percent by June 2013, 75 percent by December that year and 100 percent of that prescribed rate by June 2014.

In the period, Stanbic Bank achieved a net profit after tax of $6 million compared to $3,3 million prior year.

“The bank’s financial performance continued to improve with fee and commission income earned from transactions contributing 40 percent of the Bank’s total income of $3,5 million,” chairperson Stanford Moyo said.

Fees are earned through banking transactions processed through various channels such as branches, automated teller machines, telephone Banking, point of sales and internet banking.

Banks also earn knowledge-based fees from corporate advisory services and custody business.

“Net interest income contributed 44 percent of the bank’s total income with gross loans and advances to customers increasing from $161 million as at the end of December 2011 to $212 million as at the end of June this year,” the bank chairperson said.

Moyo said operating expenses were 21 percent up owing mainly to staff driven costs.

The bank also noted that lending rates prevailing in the country were slowly coming down.

“According to the RBZ, the weighted average lending rates for banks declined from 19,6 percent to 14,5 percent by the end of May 2012,” said Moyo.

The bank also appealed to the country’s economic stakeholders to harness external lines of credit and create an enabling environment to unlock direct foreign investment in key sectors of the economy.

“It is imperative for stakeholders to appreciate that local liquidity is not adequate to fully fund national requirements and therefore redoubled efforts should be channelled towards mobilising external lines of credit and improving the country’s investment climate to unlock positive net investment into key sectors of the economy,” he said.

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