Monday, October 2, 2023
  • About
  • Advertise
  • Privacy Policy
  • Cookie Policy
  • Contact
  • Subscribe
  • E-edition
  • Login
  • Register
  • Home
  • News
  • Economy
  • E-Edition
  • Columns
  • Companies & Markets
  • In Business With
  • Lifestyle
    • Motoring
  • Sports
    Tumisang Orebonye: Overcoming Against Adversity to Reach for the Stars

    ‘Winning The CAF Super Cup Is A Dream Come True’ – Orebonye

    BAA Needs Over P3m For World Champs

    Botswana’s Sporting Future in Jeopardy: School Sports Suspension Threatens Athletic Excellence

    No House For Tebogo Despite Astral Performance in Budapest

    “No Pressure for Tebogo at Diamond League Finals”

    BOKA Aims to Host Two Prestigious International Karate Competitions

    BOKA Aims to Host Two Prestigious International Karate Competitions

    FM Botswana 2022 conference: transformation towards a greener FM 

    StanChart CEO Underscores Role of UB Marathon in Boosting Botswana’s Sports Tourism

    No House For Tebogo Despite Astral Performance in Budapest

    No House For Tebogo Despite Astral Performance in Budapest

    Trending Tags

    • Subscribe
    No Result
    View All Result
    • Home
    • News
    • Economy
    • E-Edition
    • Columns
    • Companies & Markets
    • In Business With
    • Lifestyle
      • Motoring
    • Sports
      Tumisang Orebonye: Overcoming Against Adversity to Reach for the Stars

      ‘Winning The CAF Super Cup Is A Dream Come True’ – Orebonye

      BAA Needs Over P3m For World Champs

      Botswana’s Sporting Future in Jeopardy: School Sports Suspension Threatens Athletic Excellence

      No House For Tebogo Despite Astral Performance in Budapest

      “No Pressure for Tebogo at Diamond League Finals”

      BOKA Aims to Host Two Prestigious International Karate Competitions

      BOKA Aims to Host Two Prestigious International Karate Competitions

      FM Botswana 2022 conference: transformation towards a greener FM 

      StanChart CEO Underscores Role of UB Marathon in Boosting Botswana’s Sports Tourism

      No House For Tebogo Despite Astral Performance in Budapest

      No House For Tebogo Despite Astral Performance in Budapest

      Trending Tags

      • Subscribe
      No Result
      View All Result
      The Business Weekly & Review
      No Result
      View All Result
      Home Companies & Markets

      Stanchart post tax profit rise 21%

      Standard Chartered enters into 2022 having delivered results that reflect an overall improvement in business momentum, responding positively to the gradual economic recovery following the apparent peak of the COVID-19 pandemic through 2020 and into early 2021. Notwithstanding, the ongoing pandemic offers varying levels of uncertainty and remains a significant threat to productivity and business momentum.

      mm by Staff Writer
      April 4, 2022
      in Companies & Markets
      0
      Stanchart post tax profit rise 21%

      GABORONE 29 March 2022, Standard Chartered Bank Botswana announces the financial result in Gaborone on 29 March 2022. Mpho Masupe, chief executive officer of the bank takes through the result with the panel of Bino Rasedisa, Head consumer, private and business banking, Asuquo Nkposong, head corporate, commercial and institutional banking and Tapiwa Butale, acting chief financial officer. Masupe making his point during the result announcement. (Pic:Monirul Bhuiyan/PRESS PHOTO)

      0
      SHARES
      300
      VIEWS
      Share on FacebookShare on Twitter
      • Underlying profit before tax P77 million; up 42% (net off once off P48m reported in prior year)
      • Profit after tax up 21% to P60 million
      • Return on Equity improved by 110bps to 5.8%
      • Robust total balance sheet growth: 10%
      • Customer deposits up 6% year-on-year
      • Net fees and commission up 2% driven by improved business volumes
      • Operating income marginally down 2% to P739 million
      • Interest expense down 14%, despite a volatile liquidity environment
      • Strong Capital Adequacy Ratio (CAR) at 16.5% against the regulatory requirement of 12.5%

      The Bank says, in the face of this challenging environment, it drew on the experiences across its Global network to deliver a resilient performance, with underlying profits up by 25 percent. Operating income was marginally down by 2 percent, primarily due to a drop in interest income. The low interest rate environment coupled with market liquidity constraints contributed significantly to low margins with a resultant 4 percent drop in interest income. The bank says business strategies to grow sustainable non-funded income are beginning to show results, with net fees and commissions registering a 2 percent growth surpassing pre-pandemic performance.

      Notable growth was recorded across products in both the Retail and Corporate businesses, as the segments expanded their value propositions through the year. Strong discipline on cost lines reaped desired results as operating expenses were held flat year-on-year. Credit impairments remained low due to a combination of diligent portfolio management and the improving macro-economic variables and asset quality.

      Overall profit after tax increased by 21 percent resulting in improved shareholder returns; Return on equity increased by 100bps to 6 percent. Tax charges for the year declined substantially due to a once off deferred tax charge of P37 million reported in 2020.

      The Retail segment – Consumer, Private and Business Banking (CPBB) – spurred on by client behaviour, was able to accelerate the digital transformation strategy. The year under review saw 98 percent of client acquisitions and 80 percent servicing done digitally, and over 70 percent of the existing client base active on digital channels.

      The segment grew the Affluent segment proposition with the launch of Offshore Mutual funds and Fixed Income products. The digital bank launched the long-awaited Cardless Cash functionality which has seen exponential growth volumes since its launch in Q3 of 2021. To progress the Bank’s sustainability agenda, the segment launched a first-of-its-kind green-energy Express Banking Centre in Lobatse. The combined initiatives and enhancements saw the CPBB business register a 7 percent year-on-year growth in revenue, a 5 percent growth in client assets and a 2 percent growth in client deposits.

      The Corporate segment – Corporate, Commercial and Institutional Banking (CCIB) – recorded a second year of profitability albeit at reduced level compared to the previous year. The segment saw subdued income, due to low momentum in the early part of the year as clients emerged from the strains caused by the pandemic and the re-alignment to focus on key segments of Financial Institutions, Public Sector and Multinational Corporates.

      Client deposits showed resilience amid the re-alignment strategy, posting an 8.7% growth year-on-year. Indicating that the fundamental base of the segment and strategy is strong. The portfolio re-alignment and balance sheet composition resulted in a decline in advances to clients.

      Continued investments in digital platforms – particularly the launch of Straight2Bank NextGen – yielded positive results with costs declining by 3.7 percent year-on-year. Credit impairments remain well controlled with a release of P28million from a loss of P19million in the prior year as the Segment continues in its quest of sustainable lending. A strong pipeline of transactions and mandates is expected to be converted early in 2022.

      Tapiwa Butale, Acting Chief Financial Officer at Standard Chartered Botswana, when presenting the results said: “the results that we have posted reflect the reality that the pandemic – though a lesser unknown compared to its early years – continues to test business resilience and agility. The periods under the Delta and Omicron variants of the virus had definite impacts to operational momentum and the understandable changes to client transactions. That said, the business responded to the resilience test further validating the strength of our balance sheet. Moreover, we leveraged the insights coming in from across our Global network to adapt our operations and portfolio decisions. The results – particularly the growth in Return on Equity and underlying profit give confidence that our strategy continues to be effective.”

      Mpho Masupe, Chief Executive Officer at Standard Chartered Botswana, added: “Much like all businesses across industries and economies, we sought to find the most optimum ways to live with the pandemic and offer our clients relevant product and service solutions. If we have learnt anything from the years of the pandemic, it is the need to embrace agility and trust the strength of our balance sheet to continue to invest for business growth. Alongside this, is the priority to be unwavering in protecting our people and customers by offering them an environment that they can safely thrive in.”

      Tags: COVID-19Mpho MasupeStandard CharteredTapiwa Butale

      Navigation

      • Home
      • News
      • Economy
      • E-Edition
      • Columns
      • Companies & Markets
      • In Business With
      • Lifestyle
        • Motoring
      • Sports
      • Subscribe

      Recent News

      • September 29th Edition
      • FUEL: The Vexing – and Recurring – Question of Security of Supply
      • Hands off Bank of Botswana, IMF Tells Govt
      • BIUST holds 8th Graduation
      • StanChart leverages on its unique position

      Site

      • About
      • Advertise
      • Privacy Policy
      • Cookie Policy
      • Contact
      • Subscribe
      • E-edition

      © 2021 The Business Weekly & Review. All Rights Reserved.

      No Result
      View All Result
      • Home
      • News
      • Economy
      • E-Edition
      • Columns
      • Companies & Markets
      • In Business With
      • Lifestyle
        • Motoring
      • Sports
      • Subscribe

      © 2021 The Business Weekly & Review. All Rights Reserved.

      Welcome Back!

      Login to your account below

      Forgotten Password? Sign Up

      Create New Account!

      Fill the forms below to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
      Are you sure want to unlock this post?
      Unlock left : 0
      Are you sure want to cancel subscription?