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Standard Bank profit down 13%

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By Chimwemwe Mangazi:

CO-SIGNED THE STATEMENT—Harawa

Malawi Stock Exchange-listed Standard Bank Plc has posted a K10.6 billion profit after tax for the year ending December 31 2018 compared to K12.1 billion from the previous year, representing a profit drop of 13 percent.

A statement of financial results for the period published yesterday and signed by Rex Harawa (Chairman), William le Roux (Chief Executive), Andrew Chioko (Director) and Temwani Simwaka (Chief Financial Officer), shows that the profit drop is due to a drop in net interest income, which was down by 13 percent year on year.

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However, non – interest revenue was 22 percent above the rate for same period last year due to growth in transaction volumes in the transactional business.

The bank has also attributed the development to contraction of the revenue base stemming from the drop in interest rates as well as drops in investments towards financial assets.

“This was due to a drop in excess funding arising from a decline in customer deposits which went down by 12 percent year on year.

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“The profits went down due to a drop in net interest income which also went down by 13 percent. However, non-interest revenue was 22 percent above that of 2017 due to growth in transaction volumes which cautioned the impact of the drop in interest income,” reads part of the statement.

Earnings per share for the year also went down from K51.97 in 2017 to K45.22 in 2018.

Looking forward to the future, the bank expects macroeconomic stability to continue in 2019 supported by stable food prices and lower than prior year projected global oil prices.

“We remain committed to ensuring customer satisfaction. In order to improve customer satisfaction and efficiencies, the group implemented a new core banking system,” the statement.

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