Stanbic profit falls 11pct to $21mln

Stanbic profit falls 11pct to $21mln

HARARE, March 30 (The Source) – Stanbic Bank Zimbabwe reported a 11 percent drop in profit after tax from $23,9 million to $21,2 million in the full year to December 2016, as cash transactions decline and foreign currency shortages persist.  

Net interest income was 10 percent up to $47,2 million from $42,8 million in the prior year.
Fees and commission income dropped seven percent from $36,1 million in 2015 to $33,5 million last year due to market-wide cash shortages as well as a bank charge reduction ordered by the central bank.
Operating expenses increased by 18 percent to $59,5 million from $50,4 million in the prior year following the bank’s expansion and enhancing digital banking.

Stanbic, a unit of South Africa’s Standard Bank, said its loan-to-deposit ratio deteriorated from 57 percent to 43 percent as its customer deposit base grew by 48 percent from $474 million to $701 million.

The bank surpassed the $100 million minimum capital threshold ahead of the 2020 deadline, as its core capital stood at $106,6 million, against the current regulatory threshold of $25 million.

Loans and advances increased from $254 million in 2015 to $273 million while non-performing loans increased from 2,11 percent to 3,15 percent.

Assets increased from $594 million to $845 million.