Stanbic Bank deposits clock $1.2 billion

Stanbic Bank deposits clock $1.2 billion
Published: 03 April 2018 (977 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

UK to support Zimbabwe clear its arrears

by Staff reporter | 18 September 2018 | 43 Views

Man guns down 3 family members

by Staff reporter | 18 September 2018 | 49 Views

Zimbabwe to continue using multicurrencies

by Staff reporter | 18 September 2018 | 40 Views

Mnangagwa says no to return of Zimdollar

by AFP | 18 September 2018 | 45 Views

Hiding in the comforts of Sweden: Paul Siwela pens a letter to Mnangagwa

by Nomazulu Thata | 18 September 2018 | 52 Views

MDC Alliance legislators walk out of Mnangagwa's address

by Staff Reporter | 18 September 2018 | 108 Views

Mnangagwa lays down legislative agenda

by Staff Reporter | 18 September 2018 | 95 Views

Zanu PF hijacks ZWMB

by Staff Reporter | 18 September 2018 | 86 Views

Schools should close shop to avert the cholera crisis

by ARTUZ | 18 September 2018 | 85 Views

Cholera: Harare City Council caught sleeping on the job

by Elijah Chihota | 18 September 2018 | 55 Views

Outrage over govt spending

by Staff reporter | 18 September 2018 | 57 Views

Teachers request ZIMSEC meeting

by Staff reporter | 18 September 2018 | 53 Views

Cholera death toll now 31

by Staff reporter | 18 September 2018 | 45 Views

Prophet Magaya on cholera fundraising

by Staff reporter | 18 September 2018 | 62 Views

Mthuli Ncube moves to stabilise forex markets

by Staff reporter | 18 September 2018 | 73 Views

Chamisa weighs option to contest Mutoko North by-election

by Staff reporter | 18 September 2018 | 58 Views

Zanu-PF expels 'rogue' party member

by Staff reporter | 18 September 2018 | 53 Views

Mutasa says, 'I'll never quit Dembare'

by Staf reporter | 18 September 2018 | 47 Views

Stench of sewage in cholera-hit Harare

by BBC | 18 September 2018 | 46 Views

Traffic cop in court over $5

by Simbarashe Sithole | 18 September 2018 | 55 Views

Dabengwa launches Jill Baker's book, The Thorns

by Stephen Jakes | 18 September 2018 | 125 Views

Bulawayo council now in hands of foreigners exposed to cholera- activist

by Stephen Jakes | 18 September 2018 | 133 Views

Teachers lives exposed to cholera - Majongwe

by Stephen Jakes | 18 September 2018 | 100 Views

Retired old cabinet to be in charge of directing government programmes

by Stephen Jakes | 18 September 2018 | 117 Views

9th Parliament opening - Live Update

by Staff Reporter | 18 September 2018 | 137 Views

Zimbabwe needs its billionaires back

by Simbarashe Sithole | 18 September 2018 | 110 Views

Mnangagwa on real economic test

by Sithabile Mafu | 18 September 2018 | 98 Views

Mnangagwa seems to be on track

by Staff reporter | 18 September 2018 | 153 Views

Mnangagwa must take a chance on Mthuli Ncube's ideas

by Staff reporter | 18 September 2018 | 145 Views

Stunner, Tytan are hospitalised

by Staff reporter | 18 September 2018 | 222 Views

Econet celebrates 20 years of ZSE listing

by Staff reporter | 18 September 2018 | 77 Views

Evening kick-off for DRC showdown

by Staff reporter | 18 September 2018 | 108 Views

Mnangagwa to deliver SONA, set agenda

by Staff reporter | 18 September 2018 | 90 Views