Standard Bank yearly profit up 2%
Standard Bank has reported a two percent after-tax profit growth to K12.2 billion in the year ended December 2014 from K12.1 billion same period last year, according to published financial results.
The Malawi Stock Exchange (MSE)-listed bank said its profit growth is despite the “challenging operating environment” characterised by high inflation and interest rates and a volatile exchange rate.
The bank’s operating income grew by seven percent over the same period last year pushed by a growth in net interest income and non-interest income, which jumped by seven percent.
“A more prudent approach to lending has led to a 38 percent decrease in credit impairments year-on-year,” said a statement accompanying the financial results published yesterday.
The financial institution has touted itself for containing costs, which grew by 24 percent and was in line with inflation.
In the year, the bank registered strong growth in balance sheet, with total assets growing by 15 percent to K190.9 billion from K166.7 billion same period last year.
The growth was a result of an eight percent jump in customer deposits during the year.
“Tough economic conditions and concerns on the high interest rates continue to impact the group’s appetite to lending,” said the statement.
The bank expects monetary authorities to embark on an expansionary policy framework this year on the back of healthy foreign exchange reserves position, which have cumulatively peaked at $947 million or 5.95 months of import cover, according to RBM.
