Stanbic Bank scoops top awards

09 Dec, 2016 - 00:12 0 Views
Stanbic Bank scoops top awards

The ManicaPost

Business Reporter —
STANBIC Bank Zimbabwe has been voted the best bank in two high ranking surveys conducted by two of the country’s leading financial services institutions in Zimbabwe, cementing its reputation as one of the most stable banks in the country.

The bank came out tops in the Banks and Banking Survey as well as in the Top Companies Survey conducted by diversified financial and investment giant, Old Mutual.

The two accolades came at a time the banking sector in Zimbabwe is beset by a plethora of problems, chief among them being a liquidity crunch which has seen confidence in the sector nose dive to all time lows.

In the Banks and Banking Survey a team of seasoned analysts carefully sieved through the operations of the banking sector with a view to come up with best performers.

After a thorough and rigorous assessment, the analysts settled for Stanbic Bank Zimbabwe as the top bank in Zimbabwe citing the bank’s “remarkable metrics” coupled with a “massive vote of confidence” by the banking public.

The Top Companies Survey reviews entities listed on the Zimbabwe Stock Exchange, as well as banks and insurance companies in order to recognise top performing companies, promote good corporate governance practices, ethical conduct and corporate social responsibility (CSR).

A panel of nine judges and analysts based their liquidity assessment on numerous stress test ratios and found Stanbic Bank to have a strong performance across the board, ranking overall first out of the 12 participating banks in terms of liquidity.

Stanbic Bank has maintained the overall number one in the Top Companies Survey since 2015, a clear reflection of the financial services institution’s consistent, superior financial and operational performance track record.

The panel of analysts concluded that Stanbic Bank Zimbabwe remains one of the top banks in Zimbabwe owing to its adherence to international banking best practices and is led by a well experienced team.

“Stanbic Bank Zimbabwe Limited continues to outperform on a number of metrics, and this can only be achieved by a strong and dedicated leadership that strives to stick to international banking best practices.

“We strongly believe that the bank remains on a solid growth path, going forward,” wrote the analysts.

Stanbic Bank’s income statement showed a 11 percent growth in net interest income, mainly driven by the growth in its earning assets

Surprisingly, non-interest income came in lower than prior year despite the massive growth in deposits and this was attributable to decline in transactions due to forex shortages and regulatory directives on charges and surrender requirements on mineral and tobacco exports.

Non-interest income, is however, expected to grow significantly in the next reporting period with the increasing electronic and card transactions as the effects of the cashless banking take its toll.

While credit impairment charges increased by nearly US$1million to US$4 million leaving the pre-tax profit marginally up to US$14.5 million, Stanbic Bank remains one of the most cost efficient financial services institutions with the cost to income ratio of 59 percent  down from 60 percent in 2015, while the sector average is 84 percent.

The analysis in the Top Companies Survey showed that Stanbic Bank ranked overall second in terms of profitability and overall third in terms of return on assets and operational efficiency ratios.

As at June 30, 2016, the bank’s non-performing loans (NPLs) ratio was at 5.09 percent and this was well below the market average of 10 percent.

The 5.09 percent non-performing loan ratio was the third lowest while the bank had the third largest total deposits base.

The bank’s lowest ranking was fifth out of 12, under regulatory capital as at June 30, 2016.

However, its regulatory capital position has since improved and was at US$103 million as at August 31, 2016.

Stanbic Bank has remained robust, defying the turbulent and low growth in the banking sector to record an increase in total deposits from US$484 million as at December 31, 2015 to US$ 642 million as at August 31, 2016.

The bank’s low non-performing loans position has enabled it to earn higher profit after taxation and this has helped strengthen the bank’s regulatory capital base.

This effectively means Stanbic Bank has already complied with the 2020 minimum capital requirements of US$100 million.

Internationally, Stanbic Bank was also voted the Best Wealth and Investment Bank at the UK based Wealth and Finance Awards 2016 organised by Wealth & Finance International.

Wealth and Finance International is dedicated to providing fund managers, institutional and private investors around the world with the latest industry news across both traditional and alternative investment sectors.

In addition, accolades also flowed from the Europe Business Assembly as the bank was a recipient of the Best Enterprise Award due to the bank’s strong position in the national market, its business reputation, positive regional image, investment  attractiveness and competitiveness.

Stanbic Bank was thus regarded as one of the best regional businesses.

The bank also received an award from Wealth &Finance International, the 2016 Fund Award. The award recognises the forward thinking and initiatives of professionals from around the world who have worked tirelessly over the past 12 months to provide strong returns and reduced exposure to volatility.

The bank was found to be the leading Custodial and Asset Services partner as the industry continues to innovate and adapt in-order to grow and thrive within a difficult operating environment.

The bank’s recognition as the top bank locally and internationally comes on the back of numerous global awards for its parent company – The Standard Bank Group  reflecting deep seated culture of excellence.

The Group’s partnership with the Industrial Commercial Bank of China (ICBC) gives Stanbic Bank Zimbabwe numerous competitive advantages which include having a strong internationally recognised brand, business linkages as well as skills transfer.

In talking to the biggest challenge in the industry, StanbicBank Chief Executive, Mr Joshua Tapambgwa emphasised the importance of sharing infrastructure to avoid unnecessary wastages highlighting the massive competition from non banking players such as mobile network operators (MNO). Stanbic Bank has 20 branches, three executive suites and 29 ATMs.

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