Despite the challenging trading conditions, Standard Chartered Bank has delivered a solid set of results for the year ended 31 December 2014, during which the interest rate environment and intense market competition caused a rapid decline in margins.
The Moatlhodi Lekaukau led commercial bank’s total income rose 7 percent above 2013 levels driven by solid growth in the retail and corporate and institutional client segments. The bank’s balance sheet grew by 28 percent, with loans to customers increasing by 29 percent to P8.1 billion and deposits rising 27 percent to P10.0 billion.
“The quality of the loan book is good and impairments were well managed, decreasing by 94percent year on year,” reads the statement.
StanChart also said it had strong support from its corporate and institutional clients, with a 75 percent increase in loans and advances to this segment. Also operating expenses increased by 15 percent largely due to once off staff related costs. The bank said it continues to deliver strong shareholder value and will remain well capitalised and liquid as average equity was recorded at 28.3 percent.
“During the course of the year, we continued to implement the revised strategy and organisational structure, and added another segment, Commercial Clients (CC), to our portfolio. CC will focus specifically on growing the medium sized enterprises, leveraging our product capabilities to add value to our clients,” the bank stated.
The bank’s Commercial and Institutional Clients (C&IC) segment also performed well, recording an increase in total revenue of 12 percent over 2013 on the back of a 75 percent growth in loans and advances. The bank added that this performance is attributable to the strength of the transaction banking offering combined with the financial markets risk management expertise.
The Retail Clients (RC) segment also delivered a sound performance, registering income growth of 8 percent, with assets increasing by 16 percent, on the back of continued strong growth in Personal Lending as well as assets growth of other product lines. In addition, RC made more investments in improving the banks digital capabilities, enhancing convenience to clients. StanChart declared dividends of P60m (20.16 thebe per gross share) and paid them in 2014; a further dividend of P30m (10.10 thebe per gross share) was paid early in 2015.