Standard Bank H1 profit jumps 57% to K42bn
Standard Bank plc says despite the challenging operating environment in the first half (H1) of this year, it has chalked a 57 percent increase in after-tax profit to K42.4 billion.
The bank’s head of personal and private banking Charity Mughogho told a stakeholders meeting in Lilongwe yesterday that the profit growth has been driven by increased net interest income, which grew by 45 percent and a 24 percent revenue growth.
She said the Malawi Stock Exchange-listed bank’s strategic direction is to support small and medium enterprises, infrastructure development and climate change-related project financing, among other key priority areas with potential for sustainable growth.
However, the bank’s financial statement shows that the first half was challenging due to unfavourable macroeconomic conditions.
Reads the statement in part: “Operating costs increases by 25 percent year-on-year primarily due to increasing inflationary pressures on goods and services.”
The bank anticipates continued challenging environment in the second half of this year as outlook on inflation, currently at 33.7 percent, looks hostile in the wake of the effects of El Nino weather that dampened agricultural output.
As banks continue to post growth in profitability at the turn of the first six months of 2024, Minority Shareholders Association of Listed Companies general secretary Frank Harawa expressed excitement, stating they anticipate good returns on their investments.
In the first half of this year, National Bank of Malawi plc has posted a K43 billion profit after-tax profit from K35 billion while NBS Bank plc also said it expects profit after-tax to be in the range of K30.4 billion and K32.5 billion, representing an increase of between 149 percent and 166 percent compared to profit after-tax of K12.2 billion reported in the previous corresponding period.
Harawa said this is good news to shareholders and shows that the banking industry is growing amid challenging economic environment.
He said: “It’s another exciting moment to see our banks posting profits.
“There is stiff competition among the banks now and this means more dividends to shareholders.”
Harawa urged government to capitalise on the good performances of the banks, which is also increasing liquidity to ensure borrowing for industrial projects.
He said such investments can contribute to the economic growth through industrial growth.
