Standard Bank H1 profit up 33%, cuts interest rate

The Malawi Stock Exchange (MSE)-listed Standard Bank has posted a K5.6 billion (about $14m) after-tax-profit in the half year ended June 30 2013, a 33 percent jump from last year’s K4.2 billion (about $10.5m), which is in line with its earlier forecast.

In July, the bank’s company secretary Etness Chanza issued a trading statement which indicated that its half year profit will be more than 30 percent higher than the previous year.

According to the results for the six months ending June 30, the bank’s assets that includes cash and balances with Reserve Bank of Malawi, trading assets, financial investments, loans and advances to banks and customers, property, plants and equipment and deferred tax asset, jumped 33 percent to K128.9 billion (about $322m) from the previous year’s K97.1 billion (about $242m).

In the year, as per the results, interest income jumped to K10.1 billion (about $25.2m) from K4.1 billion (about $10.2m) with non-interest revenue also slightly going up to K7.3 billion from K7 billion the year before.

The bank’s total income also jumped 37 percent to K14.4 billion from K10.5 billion due to growth in net interest income and strong trading income performance

The bank’s earnings per share (EPS)—the portion of a company’s profit allocated to each outstanding share of common stock which also serves as an indicator of a company’s profitability—went up to K26.62 from K19.97 with dividend per share remaining stuck at K9.37, representing K2 billion.

In a statement accompanying the results, the bank touts its results as being strong and that it has realised its objectives despite the challenging operating environment in the first six months.

The bank has reduced its base lending rate, twice in a space of two months to 37 percent from 38 percent effective Thursday.