Stanchart’s Corporate, Commercial and Institution segment breaks into profitability

The segment emerged from a marginal loss in the prior year to record a PBT of P57 million.

Stanchart’s Corporate, Commercial and Institution segment breaks into profitability
Mpho Masupe, Chief Executive Officer at Standard Chartered Botswana

Standard Chartered Bank revealed that its Corporate, Commercial and Institutional segment saw a 28 percent income growth year-on-year as the commercial sub segment broke into profitability. The bank says a strong run in client transactions, including Corporate Finance delivered a 10 percent growth in non-funded income, with another 4 percent growth in trade income coming from currency trades. There was also a strong conversion rate on the lending business including trade facilities, resulting in a 7 percent growth in margin income. Costs were contained closely to a 4 percent reduction, although credit impairments grew 2.9 times to P20 million mainly driven by Covid-19 impacts on clients. However, there were no significant write offs. The segment emerged from a marginal loss in the prior year to record a PBT of P57 million.

The Retail segment – renamed to Consumer, Private and Business Banking – registered a 3 percent growth in income, driven by a 6 percent growth in client assets. Non-interest income was 4 percent down on account of substantially reduced transaction volumes during lockdown periods, the bank says. However, the bank says the non-funded income base was expanded during the year with a successful rollout of Cash Depositing Machines across the country, a main feature of the Bank’s reconfigured client interface centres (Express Banking Centres or EBCs). The bank says these unique hybrid channels come with increased convenience for clients, but a lower cost to the Bank. Overall segment profitability was down on account of once off provisions in 2020.