Stanbic Bank deposits clock $1.2 billion

Stanbic Bank deposits clock $1.2 billion
Published: 03 April 2018 (1120 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,
 0

You May Like These Videos

Comments

There are no comments.

Latest stories

President Mnangagwa a Tonga from Zambia?

by Mandla Ndlovu | 18 March 2019 | 66 Views

Bus swept away in Chimanimani

by Staff reporter | 18 March 2019 | 51 Views

Chipinge MP's wife survived by climbing a tree

by Staff reporter | 18 March 2019 | 46 Views

Zimbabweans struggle with storm floods

by Al Jazeera | 18 March 2019 | 45 Views

Jonathan Moyo recruits Kasukuwere

by Mandla Ndlovu | 18 March 2019 | 58 Views

Chamisa descends in Chimanimani as Cyclone Idai kills 82

by Mandla Ndlovu | 18 March 2019 | 43 Views

Rhodesia was 'successful' because essentially it was a province of SA

by Baffour Ankomah | 18 March 2019 | 36 Views

Army dumps Chipinge pupils?

by Mandla Ndlovu | 18 March 2019 | 45 Views

Chamisa in pole position as MDC Alliance congress beckons

by Staff reporter | 18 March 2019 | 21 Views

Mnangagwa back from UAE

by Staff reporter | 18 March 2019 | 29 Views

Mnangagwa to swear in Chidawu today

by Ndou Paul | 18 March 2019 | 34 Views

Chamisa to tour cyclone-ravaged areas

by Staff reporter | 18 March 2019 | 32 Views

We were misled - Doctors

by Staff reporter | 18 March 2019 | 37 Views

'Army killings stiffled UK efforts to lift sanctions on Zimbabwe'

by Staff reporter | 18 March 2019 | 27 Views

MDC will not campaign for sanction removal for now

by Staff reporter | 18 March 2019 | 32 Views

Chamisa rekindles his fight with Masvingo mayor

by Staff reporter | 18 March 2019 | 18 Views

Zimbabwe cyclone Idai death toll climbs to 89

by Reuters | 18 March 2019 | 17 Views

Makomo wins claims dispute

by Staff reporter | 18 March 2019 | 80 Views

Govt deploys psychologist to 'haunted' Bulawayo school

by Staff reporter | 18 March 2019 | 77 Views

Joshua Nkomo family fumes over 'delayed' Harare statue

by Staff reporter | 18 March 2019 | 81 Views

'Currency floating brings stability'

by Staff reporter | 18 March 2019 | 115 Views

Zinara audit exposes double-dippers

by Staff reporter | 18 March 2019 | 79 Views

Zimbabwe targeting to process FDI approvals in hours

by Staff reporter | 18 March 2019 | 70 Views

Zanu-PF shadow MP comes to the rescue of Harare Hospital

by Staff reporter | 18 March 2019 | 79 Views

Chombo goes to Supreme Court

by Staff reporter | 18 March 2019 | 76 Views

82 dead as cyclone toll doubles in Zimbabwe, more feared dead

by newzimbabwe | 18 March 2019 | 137 Views

We cannot blame Nelson Chamisa without blaming all of us

by Reason Wafawarova | 18 March 2019 | 92 Views

Cyclone Idai to subside

by Staff reporter | 18 March 2019 | 97 Views

Mnangagwa impressed by UAE rise

by Staff reporter | 18 March 2019 | 81 Views

Zera to beat SADC lightbulbs deadline

by Staff reporter | 18 March 2019 | 60 Views

Mnangagwa returns to be with people

by Staff reporter | 18 March 2019 | 64 Views

Bosso falls to Wankie

by Staff reporter | 18 March 2019 | 67 Views