Harare – Standard Chartered Bank Zimbabwe Limited (Stanchart) reported an improved performance in the full year ended 31 December 2018, compared to the comparative 2017 period.
Net profit came in at $18.4 million in the period under review from $133 million achieved the previous year, representing an increase of 38 percent.
Chairman Mr Lovemore Manatsa attributed the increase to the bank’s operational efficiences and a reduction in costs.
“Our strategy of digitising the banking platforms is beginning to bear fruits through operational efficiencies and a reduction in costs,” said Mr Manatsa.
Commenting on the operating environment, he said that the bank will continue to invest in and promote use of electronic payment platforms in response to the cash shortages currently prevailing in the country and in line with global payment trends.
Revenue came in at $69.1 million, representing a 10 percent growth from $62.8 million in 2017 which was in line with a growth in profitability.
Total operating income increased to $69.6 from $63.1 while operating expenses rose marginally by 1 percent to $45.1 million from $44.6 million during the same period last year.
Interest income increased to $39.4 million from $29.3 million last year and although the Bank’s interest expenses rose by a margin of 9 percent $302 150 from $276 377, net interest income was almost similar at $39.1 million, representing an increase of 35 percent from $29.0 million in 2017.
Unlike other banks which recorded growth in non-funded income, Stanchart recorded a 4 percent decline in fees and commission to $33.9 million from $35.3 million registered in the prior comparative period.
“The balance sheet remains strong and highly liquid compared to the minimum regulatory requirements. The Bank is confident of meeting the target core capital of USD100 million by 31 December 2020,” said Stanchart.
Total assets jumped 16 percent to $948.1 million from $815.8 million the previous year.
Going forward, Mr Manatsa said the bank is scheduled to roll out its retail digital banking platform in Q2 2019 to give clients the freedom of self-service on their electronic devices.
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