Standard Chartered Bank Botswana (SCBB) Limited on Tuesday said that it posted a strong set of results for the year 2013 with revenue passing the P1billion mark to deliver double digit profit after tax growth 15 percent over 2012 with growth driven by a solid performance from both businesses.
The full year 2013 financial results for the period ended December 31 2013 for SCBB’s Consumer Banking (CB) continued to deliver steady incremental income, on the back of increased lending and a more diversified asset book, with CB loans and advances increasing by 28 percent in 2013.
SCBB Chief Finance Officer Mpho Masupe said that profit before tax increased 28 percent year on year driven by excellent growth in loans and advances and deposits while total income is 11 percent above 2012 with strong growth across both businesses. He said Consumer Banking delivered 11 percent incremental revenue and Wholesale Banking increased by 8 percent.
Masupe pointed out that SCBB operating expenses increased by 9 percent largely due to continued investment in staff and infrastructure while the cost to income ratio has reduced by 2 percent to 57 percent as initiatives to contain costs continue. The bank saw a total impairment was well managed, decreasing by 57 percent.
“The SCBB’s balance sheet continues to strengthen with loans to customers increasing by 26 percent to P 6.3billion and deposits from non-bank customers rising by 8 percent to P 7.9billion,” said Masupe.
He revealed that the bank continues to deliver strong shareholder value; with earnings per share going up to 15 percent and return on average equity of 31.2 percent. Masupe added that the bank remains well capitalised and liquid.
Led by the youthful Chief Executive Officer (CEO) Moatlhodi Lekaukau highlighted that the bank continued to leverage its solutions based capabilities to add value to customers and clients.
Lekaukau pointed out that Consumer Banking made considerable strides in increasing the penetration of its internet banking platform to SME clients and improving the overall value proposition for this segment.
“We remain focused on our strategy to support our clients and customers by combining our global expertise and local knowledge with robust management of risk. Our fundamentals continue to be strong and we are well positioned for further growth,” he said.
He is of the view that the Wholesale Banking (WB) segment delivered a good performance considering the challenging market conditions and highly competitive landscape. Lekaukau emphasized that WB undertook transactions that supported a number of large corporations that are significant contributors to the economy, and important players in strategic economic sectors.
“In line with our strategic priority to build a sustainable business and contribute positively to the development of the economy, the business enhanced its deposit offering to customers, allowing them to save as they borrow,” said Lekaukau.
He added that it also resulted in a 17 percent increase in consumer deposits, while mortgage lending and SME lending registered growth of 45 percent and 180 percent respectively year on year.
SCBB CEO is optimistic that overall the Bank is in good shape and well positioned for growth. “We expect that the refreshed Group strategy and the ongoing related organisational restructuring will make us more efficient and better able to respond to our customers’ needs,” said Lekaukau.