Standard Bank Malawi plc has posted a record K52.5 billion profit for the year ended December 31 2023, the bank says in its published audited report.
The profit represents a 34 percent from K39.2 billion posted in 2022.
According to the statement, the bank’s total revenue grew by 57 percent year-on-year, driven by growth in both net interest income and non-interest revenue.
It adds that net interest income grew by 60 percent year on year driven by a 6.3 percent upward adjustment of the base lending rate and increase in loans and advances to customers which grew by 25 percent.
“The growth in interest earning assets was as a result of growth in deposits from customers which also grew by 33 percent year on year. Non-interest revenue grew by 51 percent year on year.
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“Net fees and commissions grew by 22 percent year on year driven by increase in transaction volumes. Trading revenue grew by 69 percent year on year buoyed by higher trading volumes,” the statement reads.
Standard Bank Chairperson Christopher Kapanga described 2023 as a challenging year as the operating environment was characterised by many challenges emanating from foreign currency scarcity and rising inflation.
On outlook, Standard Bank Chief Executive Phillip Madinga said economic headwinds are likely going to continue mainly driven by unfavourable rate movements given the intention by authorities to keep the exchange rate more flexible.
“Adverse weather conditions will lower crop production and weigh down national income growth. Headline inflation may ease on the back of base effects emanating from food and foreign exchange markets.
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“On the back of the IMF’s ECF programme, the economy may see increased levels of foreign currency inflows for direct budgetary support and projects which will help anchor the exchange rate. Still, the economy critically needs to boost its capacity to generate more export earnings,” Madinga said.
