Stanbic Bank deposits clock $1.2 billion

Stanbic Bank deposits clock $1.2 billion
Published: 03 April 2018 (914 Views)
STANBIC Bank Zimbabwe has exceeded $1 billion deposits in the financial year ended December 31, 2017.

The bank's customers are, however, struggling to settle foreign payments as a result of foreign currency shortages.

Since last year, Zimbabwe's banking institutions have been facing the depletion of nostro accounts used in funding foreign payments. The trend has created chronic settlement challenges for international payments resulting in most banks having backlogs for telegraphic transfers.

"As the country remained crippled by chronic foreign currency shortages, the bank's customer deposit base increased from $701 million in 2016 to close the year at $1.2 billion as depositors failed to utilise their funds for settlement of foreign obligations," chief executive officer, Mr Joshua Tapambgwa, said.

Stanbic Bank defied various economic challenges, which among others included unbearable cash and foreign currency shortages, to post an impressive set of results for the year headlined by a profit after tax of $27.6 million, up 30 percent from the prior year's $21.2 million. Chairman, Gregory Sebborn, attributed the performance to the returns on the various interest earning instruments that the leading financial services institution invested in.

The board chair said income earned from the growing transaction volumes on the various innovative electronic channels that Stanbic Bank offers as well as good recoveries on previously downgraded facilities contributed significantly to the bank's performance.

Mr Tapambgwa said a 17 percent growth recorded in the bank's net interest income, which increased from $47.2 million in 2016 to $55.1 million, was bolstered mainly by additional short-term investments acquired during the year.

He, however, said the 2017 fee and commission income deteriorated from $33.5 million in the prior period to $32.6 million as the increased surrender requirements on platinum and chrome exports had a negative impact on the volumes of customer foreign payments, which the financial institution could not process as nostro reserves remained depleted.

"The charge for credit impairments for 2017 was $2.1 million having declined from $8.4 million in 2016 as the bank's enhanced collection efforts on non-performing loans and reduced written off facilities continued to bear positive results," said Mr Tapambgwa.

During the period, total operating expenses increased by 12 percent from $57.5 million in the prior year to $64.1 million largely because of the impact of business expansion as the bank remained competitive by rolling out new products into the market as well as extending its digital channels customer offering.

Stanbic Bank's net lending book increased by 21 percent from $273.5 million in 2016 to $330.4 million largely driven by new assets, which were written, combined with the increase in facility utilisation by some counterparties who required local funding for working.

Mr Tapambgwa expressed gratitude to the Stanbic Bank team for the pleasant results, which he said would not have been possible without their resilience, team work and commitment to serve customers better in a difficult operating environment.

- chronicle

Tags: Stanbic, Deposits, Bank,

You May Like These Videos


There are no comments.

Latest stories

How much power do politicians possess and who gives it to them?

by Erick Matotoba | 20 July 2018 | 66 Views

What now comrades 2?

by Tatenda Magumise | 20 July 2018 | 76 Views

Govt is not influencing Zec: Mnangagwa tells the elders

by Mafu Sithabile | 20 July 2018 | 104 Views

The role of the Church in this election

by Erick Matotoba | 20 July 2018 | 51 Views

BREAKING: Undenge sentenced to five years in jail

by Byo24News reporter | 20 July 2018 | 88 Views

Mnangagwa's govt pressures Zesa to pay Chivayo $52m

by Staff reporter | 20 July 2018 | 81 Views

Army responds to farmer eviction story

by Staff Writer. | 20 July 2018 | 61 Views

Mnangagwa's nasty fallout with cleric

by Staff reporter | 20 July 2018 | 67 Views

Mugabe's son-in-law pocketing obscene salary

by Staff reporter | 20 July 2018 | 82 Views

Chamisa should now rethink its strategy

by Faith Zaba | 20 July 2018 | 55 Views

Zimbabwe judges, generals and post-coup dynamics

by Andrew Kunambura | 20 July 2018 | 51 Views

Chiwenga 'betrays' Zanu-PF, reveals open secret

by Stephen Jakes | 20 July 2018 | 77 Views

Mohadi returns from SA

by Stephen Jakes | 20 July 2018 | 36 Views

Chamisa vs Democracy

by Anthony Mukondo | 20 July 2018 | 50 Views

Zimbabwe postal vote row fuels political tensions

by Staff reporter | 20 July 2018 | 56 Views

July 30 election: Not free, fair or credible

by Ibbo Mandaza & Tony Reeler | 20 July 2018 | 55 Views

Mnangagwa govt hunts for $2bn funding

by Staff reporter | 20 July 2018 | 62 Views

Chamisa popularity shoots up

by Staff reporter | 20 July 2018 | 69 Views

WATCH: Chamisa after meeting Annan

by Ndou Paul | 20 July 2018 | 72 Views

Wimbo's followers will remain Zanu-PF supporters

by Staff reporter | 20 July 2018 | 51 Views

Two Zimra officials acquitted

by Staff reporter | 20 July 2018 | 46 Views

WATCH: Chigumba is not resigning as ZEC chairwoman

by Staff reporter | 20 July 2018 | 57 Views

Zimbabwe: Politics of false hope.

by Collen Madziva | 20 July 2018 | 119 Views

G40 elements working with MDC Alliance to derail elections

by Lloyd Msipa | 20 July 2018 | 289 Views

Mutare ready for Mnangagwa's 2nd coming

by Staff reporter | 20 July 2018 | 128 Views

Chiwenga salutes Crocodile Gang member Ndangana

by Staff reporter | 20 July 2018 | 164 Views

Dr Thokozani Khupe MDC-T makes fresh demands to Zec

by Staff Reporter | 20 July 2018 | 210 Views

Zanu-PF's Pemhanayi steps aside for Madiro

by Staff reporter | 20 July 2018 | 107 Views

'Studying for the Grave'

by Staff reporter | 20 July 2018 | 125 Views

Bantu buys Mutare City Rovers

by Staff reporter | 20 July 2018 | 108 Views