Stanbic Bank of Botswana brightened the streetlights for the bondholders this week by posting excellent results that saw the net interest growing by more than a quarter in the midst of the global economic crisis.
The move, which included the mining sector and the government, was credited to a number of corporate transactions that were clinched during the past six months of last year.
“The overall profit reflected at P 127 million reflected a 15 percent increase yearÔÇôonÔÇôyear based on growth.
The good news to the bondholders on the basis of the bank’s growth has agitated the masses to clamour public listing of the company to get a foothold of Batswana. The move is expected to give credence to the bank’s recent moves to localize some top positions.
That alone, will give a lot of the masses access to potential wealth avenues through the local pension funds and even including the unit trusts.
The bank has an irresistible sterling record of being in over 18 countries in AfricaÔÇö including the financial powerhouse, South Africa, according to the results released Friday. Though late in full term results that came late in the day, income before taxation shot-up by 19 percent to P 170 million.
“In the second half of the year, investment by government and the private sectorÔÇömainly diamond industry and South African private sectorÔÇöpower and infrastructure sectors, saw loan demand pick up strongly,” Leina Gabaraane said.
However, Stanbic has been widening its operations within the country by opening new branches in places like Palapye in a bid to correctly position itself in the local market.
Stanbic first opened shop in Botswana in 1992 and it has been steadily growing and currently has the same financial muscle as Botswana Building Society – pushing behind the likes of Botswana Savings Bank and National Development Bank that are heavily reliant on government though not improving on shareholders’ value and their images.
The bank intends to bring the total network branches to 10 before the end of the year and its bottom line is expected to be helped by consultancy contracts in structuring deals with government and the private sector.
The other branches will soon be opened in Diamond Park.
The move is helped by hardworking Motswana Managing Director, Leina Gabaarane, who has a lot of business connections and experience; his connections from his previous background as an asset manager will also come in handy.