Stanbic Recovers Posts $607m Profit

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By Alois Vinga

STANBIC Bank Zimbabwe has posted financial results that show a steady recovery from losses recorded last year after posting an after-tax profit of $607.2 million in the 2020 first half.

The remarkable improvement shows a strong performance from the $624 million loss in the first half of 2019

The improved performance is attributed to non-funded income like trading revenue, fee and commission income, and fair value adjustments on investment properties.

The financial institution’s chief executive, Joshua Tapambgwa said the profits were achieved as a result of a number of strategies.

“The Bank registered a 23% growth in its fee and commission income, growing from $395 million in the prior period to $486 million largely buttressed by the impact of the continued depreciation of our local currency against the USD on the foreign-dominated commission income, which, in turn, had increased substantially in local currency terms,” he said.

He said fair value adjustments on investment properties contributed towards the total income which grew by 108% from $1.4 billion as at the end of June 2019 to $2.9 billion.

He said net interest income for the period declined by 28% from $540 million to $389 million although the bank’s lending book had grown by 11% from $2.5 billion as at the end of December to $ 2.7 billion.

During the period under review, the bank’s lending rates remained stagnant on account of regulatory constraints, at a time when average monthly rates were around 18%.

Stanbic Bank’s board chairperson, Gregory Sebborn said the bank ended the six-months to 30 June 2020 with a qualifying core capital of $2.1 billion surpassing the local currency equivalence of the required US$30 million regulatory minimum core capital.

He commended improvements in the country’s electricity availability which has prompted improvements in industrial productivity.

The financial institution also extended donations worth over US$200 000 in the form of five ventilators, personal protective equipment: goggles, N95 masks, surgical masks, and face shields; 2 400 PCR tests, sanitisers and two boreholes.