Standard Chartered Bank Botswana (SCBB) has announced that the group’s results for the period ended 30th June 2014 will be significantly higher than those achieved in the same period the previous year. The bank said this rise in income is due to receipt of revenue originally budgeted for later in the year. However, the performance trajectory is expected to normalise by end of the year.
SCBB further advised its shareholders to exercise caution when dealing in the company’s securities until the results are announced. In the corresponding period in the prior year, SCBB, led by Chief Executive Officer (CEO) Moatlhodi Lekaukau, recorded double digit income growth for the first half of 2013, with total income up by 11 percent to P 483 million, driven by strong growth in both consumer banking and wholesale banking revenue. In the bank’s half year financial results for the period ended June 30th 2013, consumer banking delivered 12 percent incremental revenue while wholesale banking was up by 10 percent.
The balance sheet did strengthen with loans to customers increasing 26 percent to P 5.7billion and deposits from non-bank customers rising 5 percent to P 7.7 billion. The bank’s operating expenses increased 10 percent due to controlled business growth while loan impairments for both businesses was said to be well managed. When announcing the bank’s results at the time, Lekaukau stated that although the economic environment has been challenging the bank remains well capitalized with a robust balance sheet and is well positioned with ample liquidity to better serve their clients to achieve their growth aspirations.
“The bank announced a renewed and strengthened customer value proposition for its SME clients, taking into consideration their changing needs of working capital, business expansion, business protection and yield enhancement,” he stated.
Meanwhile, SCBB in its 2013 full year results posted a strong set of results with revenue passing the P1billion mark to deliver double digit profit after tax growth of 15 percent over 2012. Growth was driven by a solid performance from both businesses.
SCBB’s consumer banking (CB) continued to deliver steady incremental income on the back of increased lending and a more diversified asset book, with loans and advances increasing by 28 percent in 2013.