Standard Bank profit up 50%

Standard Bank profit up 50%

Post was last updated: March 6, 2020

By Justin Mkweu:

Profit-after-tax for Standard Bank plc went up by 50 percent to K15.9 billion in the year ended December 2019 from K10.5 billion in 2018.

In its published financial statement issued yesterday, the bank attributes the positive performance to a 12 percent increase in net income, emanating from growth of the customer loan book.

This is despite a general decline in the level of interest rates during the year.

Growth in customer loans and advances was 32 percent year on year, while financial investment grew by 18 percent.

During the year under review, customer deposits went up by 6 percent and this contributed to the growth of interest earning assets.

“As a result of the higher revenue base and lower growth in operating costs, the cost to income ratio was reduced by 58 percent compared to 63 percent in the prior year,” of the statement reads.

Operating costs growth was kept to 1 percent year on year despite inflationary increases of goods and services.

Going forward, the bank has expressed optimism to further grow its business, premising on positive economic outlook.

“The group expects macroeconomic stability to continue in 2020 on the back of a normal agricultural season that would lend support to local currency and sustain low and stable inflation and interest rates,” reads the statement.

The bank says it will continue to enhance its digitisation projects to ensure improved customer experience.

Meanwhile, the bank says an interim dividend of K2.1 billion was paid in September 2019, representing K8.95 per ordinary share.

The bank’s board of directors then recommended a final dividend of K5 billion, representing K21.31 per ordinary share to be tabled at its forthcoming Annual General Meeting.

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