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Stanbic Bank Profit after tax up by 210% for the year ended 31 December 2023.


Stanbic Bank Profit after tax up by 210% for the year ended 31 December 2023.

Harare, 27 March 2024 – Stanbic Bank Zimbabwe has defied the challenging operating environment to post an inflation adjusted profit after tax of ZWL744 billion for the year ended 31 December 2023, up by 210 % from ZWL240 billion in the prior year.

In a statement accompanying the results, Stanbic Bank Chairman, Gregory Sebborn said the institution ended the year with a qualifying core capital of ZWL912.8 billion up from ZWL83.5 billion in 2022, which is equivalent to USD149.5 million against the regulatory minimum in the local currency equivalent of USD30 million.

Stanbic Bank Chief Executive (CE), Solomon Nyanhongo said inflation adjusted net interest income closed the period at ZWL429 billion, exceeding prior period income of ZWL299 billion by 44%.

“This growth was largely spurred by the increased demand for both foreign currency and local currency funding by our customers. This in turn saw new lending assets in both foreign and local currency being written during the period,” said Nyanhongo.

He said during the year under review, demand for foreign currency loans was elevated, supported by the continued migration of business operations from local to foreign currency.

Fees and commission income improved by 171% to ZWL471 billion up from ZWL174 billion.

Nyanhongo attributed the growth in Stanbic Bank’s inflation adjusted fee and commission income to the uplift in its foreign currency denominated commission.

He said increased volumes of foreign currency denominated transactions were processed on the Bank’s various service channels during the year 2023 as business operations had shifted significantly from local to foreign currency owing to the depreciation of the ZWL currency against the USD.

“In addition, new customers were acquired during the period supported by an improvement in customer transactability as the usage of foreign currency in the market increased. A net release of ZWL50 billion was recorded in expected credit loss allowances during the year, improving from a net raise of ZWL55 billion in the previous period,” said Nyanhongo.

He said the release in expected credit loss allowances was largely driven by the improvement in the quality of Stanbic’s lending book following the February 2023 interest rate reduction from 200% to 150%. This saw some customers settling the previously reported loan arrears thereby contributing to a reduction in the value of stage 2 facilities on which lifetime impairments are recognized.

Nyanhongo said the Bank’s customer deposit base grew by 90% in real terms from ZWL1.7 trillion in 2022 to ZWL3.3 trillion largely boosted by growth in both foreign currency and local currency deposits as new customers were acquired combined with an increase in wallet share on existing customers.

“The Bank continues to drive value chain support including funding of out-growers in the agriculture sector particularly in tobacco, dairy production, and horticulture to improve both food security and foreign currency generation in the country,” said Nyanhongo. He acknowledged the support of the bank’s clients.

“My sincere gratitude goes to our esteemed customers for their relentless support and commitment which has contributed immensely to the success of the Bank,” said Nyanhongo.

He also paid tribute to the Stanbic Bank’s board, management and staff for proving their resilience and sharp focus during 2023, who all did not hesitate to share ideas and put their best foot forward.


Additional Group Information

Standard Bank Group recorded headline earnings of R42.9 billion for the 12 months to 31 December 2023 (FY23), up 27% on the prior year (FY22) and delivered a return on equity of 18.8%. This strong performance is underpinned by the bank’s robust and growing franchise and is reflective of the positive momentum in its businesses.

Standard Bank’s Africa Regions contributed 42% to group headline earnings. The top eight contributors to Africa Regions’ headline earnings were Ghana, Kenya, Mauritius, Mozambique, Nigeria, Uganda, Zambia and Zimbabwe.





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