Stanbic posts $12,8m profit

HARARE - Stanbic Bank Zimbabwe, a subsidiary of Standard Bank Group of South Africa, posted a $12,8 million profit for the half year to June 30, 2017, up from $10,5 million recorded in the comparable period the previous year after improved net interest income and short-term investments acquired during the reporting period.

Stanbic chairperson Greg Sebborn also attributed the profit to the bank’s strengthened loan collection efforts.

“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 $12,8 million in comparison to the prior period profit of $10,5 million.

“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 June 30, 2017, Stanbic’s qualifying core capital stood at $119,5 million, up from $95,3 million during the same period last year, above the regulatory minimum of $25 million.

The $119,5 million qualifying core capital puts Stanbic in a healthy position ahead of the year 2020 regulatory minimum core capital requirement of $100 million.

Stanbic chief executive officer Joshua Tapambgwa said he was pleased that the financial institution had overcome the increasing vulnerabilities prevailing in the economy to record a profit.

Giving the run-down of the performance, Tapambgwa said net interest income grew by 11 percent to $25,5 million, from $23,1 million 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 four percent.

He said Stanbic Bank was focused on ensuring that the lives of its customers were 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 rolled out more POS 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.

“As we strive to diligently serve our customers, low cost options of sending money to mobile wallets and agent banks were introduced,” he said.

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