Standard Chartered Bank Botswana on 8th May held a 2012 results presentation to local analysts from various firms. The results show that the bank has managed to maintain sustainable and consistent growth despite the current global economic conditions. There are clear signs of recovery indicated in the results and Standard Chartered Bank Botswana has been successful in carrying out its strategy to further improve its performance. The Bank posted a robust set of results against a challenging climate of micro-economic and currency headwinds, a testament to the resilience of the Bank’s balance sheet and income streams.
The results revealed an increase of 13% of net interest income from P511.4 million to P577.3 million driven largely by growth in loans and advances to customers, funded with less expensive deposits. Non funded income was 8% lower than the previous year due to a lack of large corporate finance transactions consummated in 2011. This resulted in a modest 4% growth at the total income level. Consumer Banking delivered 9% incremental revenue, compared to a 5% dip in Wholesale Banking. In addition, operating expenses increased 16%, as the Bank accelerated investment spends in people capacity, service delivery, training and customer channels. Cost to Income Ratio increased from 52.9% in 2011 to 58.9% in 2012.
Proposed/declared dividend per share from 2012 profits is 67.04 thebe compared to 30.17 thebe in 2011. Actual cash dividends paid during 2012 amounted to 36.87 thebe compared to 53.63 in 2011. Return on average equity in 2012 was 32.1%.
Standard Chartered Bank Botswana Chief Executive, Moatlhodi Lekaukau said the bank will continue to focus on the basics of banking and growing clients’ businesses while maintaining our balance sheet strength. “Our results reflect these efforts. Loans and advances to retail customers grew by 23% with the Bank sustained its market share in this sector, whilst pursuing an expansion strategy into SME and mortgage markets.
Corporate lending also posted an impressive growth at 21% as the Bank continues to be the choice financier of the Mining, Diamond and Jewellery sectors. The Bank’s balance sheet is in excellent shape and we continue to be highly liquid, well capitalised and remain deposit funded. We are also committed to meet Basel II implementation timelines as advised by Bank of Botswana. We are disciplined and proactive in our approach to risk management.”
During the period under review, the Bank opened its brand new state of the art branches at Airport Junction Mall in Gaborone and Nzano Centre in Francistown. In further demonstration of the Bank’s commitment to improving quality of service to customers, a 24-hour full service call centre became operational – the only one in the market. Standard Chartered customers have also been granted access to withdraw cash from ATMs of other banks without incurring charges – subject to limited conditions. In addition, SMS alerts on debit and credit card transactions have been improved to deliver messages on real time basis, whilst Online Banking PINs are now delivered direct to mobile phones.
Head of Corporate Affairs at Standard Chartered Bank Botswana noted that the bank continues to pursue the group aspiration to be The World’s Best International Bank – Leading the Way in Asia, Africa and The Middle East.
“Africa is at the centre of this strategic intent and Botswana is a key part of the African franchise. We are pleased with this most recent set of results and committed to giving our shareholder even more value in the future.”
