Wednesday, October 21, 2020

Stanchart intensifies “digital services” following poor performance

Standard Chartered Bank Botswana says after an unimpressive full year results for the period ended December 31st 2015 it is considering significant investment on the digital platforms to enhance client experience and convenience banking. 

“Soon we will be refreshing our ATM machines by introducing more touch screen ATM’s and Cash deposit machines,” said SCBB Head of Retail Clients Pedzani Tafa at the result presentation recently. 

Tafa believes that as a commercial bank, they are able to facilitate trade, investment and wealth creation in all different regions for and on behalf of their customers. She said that SCBB is committed to helping Batswana businesses achieve their ambitions in the right way. 

“In 2015 the bank introduced chip-based debit cards to protect our clients from debit card fraud and we launched of offshore fixed income proposition,” Tafa stated adding that:  “The bank will provide superior cash management solutions through our digital platform straight2Bank”.

At the same time, Tafa said that the bank intends to improve the wealth management capabilities by launching general Insurance, improved life insurance products for individuals and businesses and also introduce local currency bonds. 

She is of the view that the bank’s immediate priority is to continue to execute its important mandate of being a financial intermediary of choice in Botswana and across the continent and thereby contribute to the continued deepening of the financial services sector in Botswana and the growth of the economy.

As one of the top three commercial listed banks, led by CEO Moatlhodi Lekaukau, Standard Chartered Bank Botswana’s financial results for the 12 months ended 31 December 2015 were impacted by the challenging trading environment. The banking sector’s general performance have been characterised by subdued macro-economic conditions, low interest rates and a significant decline in market liquidity.

Meanwhile Standard Chartered’s operating income is 18 percent down, reflecting challenging market conditions and strategic management decisions to strengthen the balance sheet at the expense of short term performance. The bank’s profit before tax is P338 million (83 percent) lower than prior year due to a decline in revenues and the impact of a provision taken for a significant single corporate client this year. 

Net Interest Income (NII) is down by P124 million (21 percent) driven by the bank rate cuts and the increase in interest expense paid on deposits, following liquidity pressure.  The group’s costs are up by P41million (6 percent) higher than prior year, largely due to higher technology and management support costs 

Operating expenses were contained to an increase of 6 percent to P706.0m, reflective of cost efficiencies delivered in 2015. The bank’s balance sheet remained resilient with 3 percent growth.

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