Standard Bank Delivers Solid Performance

| April 16, 2015

Standard Chartered Bank Botswana has delivered solid performance despite marginalised results due to squeezed margins in the banking industry this past year.

SCB Botswana chief executive officer, Mr Moatlhodi Lekaukau told a press conference recently that the retail clients segment grew loans and aances to customers by 16 per cent and remains the anchor of their business at 63 per cent of the total book.

“Total income grew by seven per cent driven by 29 per cent growth in loans and aances to customers,” Mr Lekaukau said. He noted that the organisational structure they introduced last year allowed the bank to operate more efficiently as one group and serve their clients’ end to end requirements.

Again, he said the establishment of the commercial clients segments allowed the institution to give specific focus to medium enterprises through tailored solutions. “We continue to strengthen our management team, with three senior management appointments made in 2014 from internal candidates, all of which were Batswana,” he said.

Further, he said the bank continued to improve their control environment, therefore remained committed to a prudent and proactive approach to risk management. He also told the press conference about the bank’s corporate and social responsibility which he said continued to deliver on its mandate.

“One of the highlights of these initiatives in 2014 was our partnership with Thusang Basadi, which involved a donation of P1 million as well as employee volunteering to impart business related knowledge and skills,” he said.

Mr Lekaukau indicated that the bank anticipated that external environment would continue to be challenging with heightened competition keeping deposit rates high, causing overall erosion of margins. “Our restructured business will be more efficient and better able to capture market opportunities to increasing value to customers,” he said.

The management team, he said would leverage the bank’s network with product partner expertise and capabilities to serve clients holistically, adding that the good shape of the bank’s balance sheet positioned the bank favourably for long term growth.

“Further, we will leverage our capabilities through continued investment in our people and the digitisation agenda,” he said.

On the economic environment that the bank was operating within, the bank’s chief financial officer, Mr Mpho Masuke said Botswana’s Gross Domestic Product (GDP) growth in 2014 was recorded at 4.4 per cent down from the revised 2013 figure of 9.3 per cent.

Mr Masuke also reported a forecast of 4.9 per cent growth of the GDP this year. He indicated that growth over 2014 was supported by both mining and non-mining sector but dragged down by water and electricity.

“The mining sector recorded slowing growth of 2.5 per cent in 2014 from 20.5 per cent realised in 2013 mainly due to a decline in diamond production by 5.7 per cent from 16.9 per cent registered in 2013,” he said.

Further, he said the bank continued to experience consistent growth in income whilst investing in staff and infrastructure. “The balance sheet has strengthened by P2.7bn (28 per cent) over the last 12 months,” he said.

Source : BOPA

Source : Botswana Daily News

Category: Business & Finance

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