Stanbic Bank, the titian African banking outfit, said its Botswana operations grew by nearly 24 percent in full year to end of last December.
The bank, which is not yet listed on the main equity board, indicated in its financial results that growth in profit after tax shot-up from P89.4 million in 2006 to P110.7 million in 2007 representing a 23.8% growth which was supported by all segments.
“The growth in profit after tax is attributed to a strong growth in the bank’s non-interest revenue which grew by 28% coupled with lower impairment charges. The bank saw a 41% growth in advances and loan demand by the end of 2007,” it said.
However, it said: “Tight economic conditions and tough competition for assets saw a squeeze in the net interest margin.”
It said the improvement in the business activity was a result of Government’s spending on infrastructure development and private sector’s investment in mining.
This in turn increased downstream loan demand across a range of sectors. Stanbic Bank Botswana took advantage of the improvement in the economy and positioned itself well and significantly increased its balance sheet.
During the course of 2007, the bank established business banking in Gaborone, Francistown and Maun.
The bank also launched a number of new products and services among them, internet banking, customer care centre and auto money ATM operating from retail outlets which all proved to be a success. Two branches in Gaborone were upgraded and relocated.
The bank also took a shave on staff expenses, which edged up by 27.2 percent as it tries to position itself in the already competitive market.
“As a bank, our group values are central to all we do and in particular, that of placing the customer at the centre of our focus. We have introduced a number of initiatives which have motivated staff, hence their quest to position Stanbic Bank Botswana, a bank of choice in this country,” Stanbic Bank Botswana’s Managing Director, Dennis Kennedy said.
The bank is upbeat on the current year’s prospects which are helped by the economic outlook. It said as part of its strategy it intends to grow its customer base by opening new branches and introducing more products and services in order to meet the demands of the market.