Standard Bank profit up 58%


By Frank Phiri, contributor:

Net profit for Malawi Stock Exchange-listed Standard Bank plc increased by 58 percent to K39.2 billion, driven mostly by growth in revenues from lending and cost cutting operations, the bank’s published results for the financial year ended December 31 2022 showed Thursday.

It was the second consecutive year that the bank’s financial performance defied the odds and exceeded expectations.


In 2022, the macro-economic environment was haunted by scarcity of foreign currency and fuel, rising inflation and electricity failures.

“Despite the challenges in the operating environment, the group performed better than expected as it managed to grow its balance sheet which, in turn, resulted in higher profitability when compared to prior year,” reads the financial report, co-signed by the board comprising, among other directors, the Chief Executive Phillip Madinga, and Chairperson Ngeyi Kanyongolo.

It says total revenues grew by 40 percent year on year (2021:31 percent) driven by growth in both net interest income and non-interest revenue.


Net interest income grew by 49 percent year on year (2021:25 percent) driven by growth in loans and advances to customers and financial investments. Loan book grew by 14 percent while income from financial investments grew 99 percent year on year,” the report reads.

“The growth in interest earning assets was as a result of growth in deposits from customers which also grew by 48 percent year on year,” it says.

The report says the bank’s non-interest revenue grew by 28 percent year on year, while an increase in transaction volumes boosted revenue from net fees and commissions by 15 percent. Trading revenue grew by 35 percent year on year anchored by an increase in trading volumes.

Although the 25 percent devaluation of the Kwacha resulted in an increase in Standard Bank’s operating costs by 28 percent, the bank managed to reduce cost-to-income ratio from 52 percent in 2021 to 48 percent in 2022.

“The group continues to focus on cost and process optimisation initiatives in order to achieve operational efficiency,” reads the report, citing costs related to enhancing the security of transactions across digital platforms and foreign currency costs, as part of the cost consideration for 2022.

Facebook Notice for EU! You need to login to view and post FB Comments!
Show More

Related Articles

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker