The ManicaPost
Business Reporter
LEADING financial services institution, Stanbic Bank Zimbabwe has posted a $12,8 million profit for the half year to June 30, 2017, up from $10,5 million in the comparable period last year.
Stanbic Bank Zimbabwe chairman Mr Greg Sebborn attributed the competitive set of results to better net interest income buoyed by additional short-term investments acquired during the period. Mr Sebborn said strengthened collection efforts on non-performing loans also contributed significantly.
“Notwithstanding the elevated turbulence in the macro-economic environment, the bank recorded a commendable performance closing the first half of the year with a profit of $12,8 million in comparison to the prior period profit of $10,5 million.Non-funded income also performed strongly as the bank continues to drive various electronic means of payment as the market continues to embrace the digital platforms,” said Mr Sebborn.
As at June 3, 2017, Stanbic Bank’s qualifying core capital stood at $119,5 million, up from $95,3 million in June 2016 and well above the regulatory minimum of $25 million.
The $119,5 million qualifying core capital puts Stanbic Bank in a healthy position ahead of the year 2020 regulatory minimum core capital of $100 million.
Stanbic Bank, a subsidiary of Standard Bank Group of South Africa, will remain compliant with capital requirements after IFRS 9 becomes effective on January 1 2018.
Mr Sebborn noted that the International Monetary Fund (IMF) and the World Bank projected the Zimbabwe economy to grow by an estimated 3percent in 2017 compared to a modest growth of 0,6 percent in 2016.
The two international financial institutions bodies based their forecast on the back of a better performance in agriculture as a result of a good rainfall season and timeous financial support to the sector by the Government, private players and development partners.
The partial recovery in international mineral prices as well as viability gains driven by Government’s review of royalties is providing growth impetus to the mining sector. The positive developments in agriculture and mining are extending stimuli to other sectors of the economy, providing overall positive growth prospects for 2017.
The IMF and World Bank have also singled out the excessive money supply growth fuelled by the financing of the fiscal deficit as a significant threat towards price stabilisation and sustainable growth. There is need for concerted efforts towards implementation of policies which promote local industrial growth and generation of increased foreign currency.
Mr Sebborn said Stanbic Bank continued to maintain high standards of corporate governance, ensuring that its conduct is above reproach. It complies with regulatory and corporate governance requirements, and is committed to advancing the principles and practice of sustainable development and adherence to the laws of the country.
During the period under review, Stanbic Bank complied with regulatory requirements and central bank directives, in all material respects.
Stanbic Bank continues to channel resources towards taking care of its communities. The bank also supports developmental initiatives and projects initiated by other individuals or groups who have taken it upon themselves to address different needs in their own communities.
“These activities are our responsibility, and as a business, we believe they are a worthwhile investment whose benefits make communities’ livelihoods better in both the short and the long term. Our CSR aims are to bring all stakeholders’ insights and passion together, from our employees, our shareholders and the communities at large,” said Mr Sebborn.
Stanbic Bank chief executive Mr Joshua Tapambgwa was pleased that the institution overcame the increasing vulnerabilities in the economic environment to do well.
Giving the rundown of the performance, Mr Tapambgwa said net interest income of $25,5 million grew by 11 percent from $23,1 million as additional short-term financial investments were acquired during the period under review.
The growth in net interest income was partially offset by the temporary fluctuations in facility utilisation such as the deterioration in the volume of cash transactions and outgoing customer foreign payments, a development which saw bank fees and commission income decline by 4 percent.
Mr Tapambgwa said Stanbic Bank was focused on ensuring that the lives of its customers are made easier as they navigate an increasingly difficult operating environment as evidenced by the continued digital banking journey in a cash-starved environment, where Stanbic Bank rolled out more POS devices into the market.
“Our digital banking product suite was enhanced through the addition of more billers on our Blue247 mobile banking platform
