Standard Bank profit after-tax hits K24.8bn
Standard Bank plc has posted a four percent increase in profit after-tax to K24.8 billion in the year ended December 31 2021 from K23.7 billion in the previous year.
The Malawi Stock Exchange (MSE)-listed bank’s consolidated results indicate that total revenues grew by 31 percent driven by growth on both interest income and non-interest revenue.
The results show that net interest income grew by 25 percent on account of an increase in loans and advances to customers while financial investments grew by 25 percent year-on-year and non-interest revenue by 41 percent.
“Regardless of the performance, the group continued to operate in a challenging environment as demand for foreign currency continued to outweigh supply. This resulted in the kwacha depreciating.
“Covid-19 also continued to affect business which in turn impacted credit growth and transactability,” reads a statement accompanying the financial results co-signed by Standard Bank Malawi plc chief executive Phillip Madinga, board chairperson Ngeyi Kanyongolo, chief financial officer Temwa Simwaka and director Andrew Chioko.
According to the bank, credit impairments were significantly up compared to the previous financial year due to growth of customer loans and advances as well as the impact of Covid-19 on the loan book which resulted in additional credit impairments.
Compared to 2020, Standard Bank’s operating costs were 20 percent up as a result of the increase in prices of goods and services as well as the groups’ investments in information technology in line with the bank’s digital transformation strategy.
Notwithstanding the negative effects of the pandemic and unfavourable macroeconomic environment, Standard Bank’s earnings per share grew to K106 in 2021 from K101 in 2020, the bank said.
