Tuesday, October 26, 2021

StanChart finance books look fit and healthy

Standard Chartered Bank Botswana Limited’s (SCBB)   profit before tax remains strong and fit for growth at 51 percent while the balance sheet remains healthy for 2017. 

The bank’s performance in 2016 is up 3 percent despite the banking retail challenges of impairment.

SCBB’s full year results for the period ended December 31, 2016 stood at P 77 million while Retail Banking revenue went up by 9 percent. 

On commercial banking, the revenue has gone up 6 percent and loans and advances increased 38 percent while deposits increased 19 percent.

SCBB’s operating expenses reduced by 3 percent compared to 2015 while profit after tax increased by 68 percent to P79.7million. The bank saw a growth of total assets by 6 percent with loans to customers increasing by 7 percent to P7.7 billion. The bank’s customer deposits increased by 14 percent to P11.3billion.

The bank’s outgoing Chief Executive Moatlhodi Lekaukau is of the view that 2015 was a challenging year for the bank, adding that it was important for them to turn the situation around. 

Lekaukau stated that despite the challenges of 2015, the group remained committed to delivering on medium term strategy into 2016 that was under-pinned by people, service delivery, stronger control environment and employee banking. 

“We are strategically aligning to key growth areas and projects in the local market such as energy, water, infrastructure and mining. We want to deliver better product solutions  and focus on product offering that forms part of our clients’ operations and supply chain and grow debt capital markets,” said Lekaukau.

SCBB Chief Financial Officer (CFO) Mpho Masupe said the commercial banking segment registered a 6-percent increase in total income despite the challenges in the operating environment. 

He added that corporate and institutional banking continued to support large corporates through advisory and structured financing solutions, registering a year-on-year increase of 14 percent in customer liabilities.

“The projected turnaround comes amidst a low inflationary environment, where headline inflation averaged 2.8 percent in 2016, enabling for an accommodative monetary policy. The bank rate was reduced by 50 basis points in 2016, taking it to a record low of 5.5 percent,” said Masupe.

The bank’s final dividend is 16.66 Thebe per ordinary share, amounting to P49.7 million to be paid on or about May 19, 2017 to shareholders. An interim dividend of P30 million (10.06 Thebe) per ordinary share was declared and paid during the year out of the 2016 profits. 

A further P90 million (30.17 Thebe per gross share) was paid early in 2016 out of the 2014 profits.

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