Standard Bank profits up 46%
The bank, in the published results released on Thursday, said its cost base dropped by 12 percent mainly because of cost control measures implemented in the year.
Additionally, the Malawi Stock Exchange (MSE)-listed bank touts the reversal of severance provisions due to the changes in the Pensions Act 2011 as having contributed to the reduction in the cost base of K693 million (about $4.1m).
“The group achieved a remarkable growth in 2011 notwithstanding the challenging environment that it was operating in. The statement of financial position grew by 37 percent when compared to the prior year,” reads the statement jointly signed by the bank’s chairperson Alex Chitsime, director Dr Rex Harawa, managing director Charles Mudiwa and finance director Temwani Simwaka.
It said the growth in financial position came about because of an increase in customer deposits of 35 percent and also a growth in loans and advances extended to their customers by 56 percent.
The bank, whose assets have grown by 36 percent to K75 billion (about $449m) from K55 billion (about $330m) the year before, wants to maintain their market share going forward.
“We will introduce new products in the coming year while keeping our focus on customer service. We will ensure continued profitability by having an efficient statement of financial position and prudent cost control measures,” according to the statement.
The bank said it expects a reduction in overall economic activity with inflation, which was recorded at 10.3 percent in January, set to be on the upward spiral and foreign exchange shortages continuing to affect businesses.
But the bank is optimistic: “However, the economic activity may pick up later in the year depending on government economic policy.”
In 2011, the financial institution said the business environment was challenging due to serious foreign currency shortages following a dismal performance of tobacco whose revenue dipped by 30 percent and the withholding of budgetary support.
On the local bourse, as of Wednesday, Standard Bank, with 213 million shares on issue, had its share price trading at K106.
