HARARE - Standard Chartered Bank Zimbabwe, Chairperson, Lovemore Manatsa says digitising the Bank’s delivery platforms is beginning to bear fruit through operational efficiencies and reduction in costs which has catapulted the group to profitability.
Profit after tax increased by 47 percent to $10.0 million in the half year ended June 30, 2018 from $6.8 million achieved in the same period last year.
The government through the central bank have been encouraging paperless banking and online bill payments to address the prevailing cash shortages, a move which has been widely adopted by the business sectors and customers.
Mr Manatsa said that the Bank will continue to invest in digital platforms in the interests of its stakeholders and contribute to the development of the country’s economy.
“Standard Chartered Bank Zimbabwe Limited continues to invest and promote the use of electronic payment platforms in response to the cash shortages and in line with global payment trends,” he said.
“The Bank remains committed to driving the long-term interests of all its stakeholders as well as the facilitation of development and growth of the Zimbabwean economy.”
Fee and commission income grew marginally to $17.5 million, representing a growth of 4 percent from $16.9 million recorded in the same period last year.
Total revenue for the period under review grew by 12 percent to $33.7 million from $30.1 million achieved in the comparative period last year, also boosted by the successful cost containment measures.
The group said the balance sheet remains strong with capital levels well above the minimum regulatory requirements.
Non-performing loans ratio at 2.1 percent improved compared to 2.8 percent for the financial year ended December 31, 2017, which is well within the regulatory threshold of 5.0 percent.
“The Bank is highly liquid with a liquid asset ratio of 90 percent compared to the regulatory minimum of 30 percent and it is confident of meeting the target core capital of $100 million by 31 December 2020,” said Mr Manatsa.
Banks have adopted the implementation of the new accounting standards, IFRS 9 impairment model which is expected to further augment the efficiency of the banking system to safeguard the interests of shareholders and general public.
Although IFRS 9 is an accounting standard, it is expected to play its part in strengthening the financial institution’s credit risk management system in particular and bringing about a sound banking system at large.
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