Stanbic FY earnings up 6.4 pct

Stanbic FY earnings up 6.4 pct

HARARE, March 28 (The Source) – Stanbic Bank has reported a 6,4 percent growth in after-tax profit to $18,3 million for the full-year to December 31, 2013 compared to the prior year driven by growth in net interest income.

The bank, a local unit of South Africa headquartered Standard Bank Group, grew its lending book by 13 percent to $258 million, boosting its net interest income to $35 million from $32 million in the prior year.

The bank attributed the marginal growth in profit to a slowdown in economic growth although operating costs were higher at $46 million from $40 million in 2012.

Fee and commission income contributed 38 percent of the bank’s total income of $79 million.

“The challenging environment weighed down on the performance of the bank. Fee and commission income grew by five percent a reflection of the reduction in charges in line with the implementation of the memorandum of understanding between banks and the Reserve Bank of Zimbabwe, compounded by the slowdown in the level of economic activity that prevailed throughout the year,” Stanbic chairman Sternford Moyo said in a statement accompanying the financials.

The agreement to cap interest rate charges was suspended last November and banks are now required to seek approval from the central bank before adjusting them.