Stanbic Bank Zimbabwe has recorded an inflation-adjusted profit after tax of ZWL$1.1 Billion, This follows the bank’s poor showing in 2019 when it posted a loss of ZWL$44 million.
The bank’s Chairman Gregory Sebborn said in a statement accompanying the financial results that the bank ended the year with a qualifying core capital of ZWL$3.8 billion. This is a massive improvement from the ZWL$651.2 million that was recorded the previous year.
That figure when converted is US$30 million and puts Stanbic Bank ahead of the minimum capital threshold for 2021. However, even though the bank performed well Gregory Sebborn noted the effects the pandemic had on the economy.
“The outlook for 2021 remains grim on account of the resurgence in the number of COVID-19 infections. Sustenance of the positive developments achieved in the second half of 2020 will be hugely dependent
on the impact of COVID-19 in the outlook and potential Government interventions to control any adverse developments. The GDP growth rate of 7.4% projected by Government for 2021 could be at risk if the impact of COVID-19 on economic performance is not significantly mitigated through availability of a sustainable and affordable vaccine”
Low lights
Stanbic Bank didn’t fare so well when it came to lending in 2020. The bank’s new CEO Solomon Nyanhongo said that Stanbic’s net interest income declined by 18% from ZWL$2 billion in 2019 to ZWL$1.7 in 2020.
This is despite the bank improving in gross lending from an inflation-adjusted balance of ZWL$4.3 billion to ZWL$9 billion which was fueled by a demand for local currency funding.
Lending rates were also down in 2020 as they could not match the 14% average month on month inflation.
“The Bank recorded a 53% increase in its net fee and commission income, growing from ZW$1.7 billion in 2019 to ZW$2.6 billion. The improvement in our fee and commission income was largely underpinned by the impact of the rapid depreciation of the local currency against the USD on our foreign denominated commission income”
Solomon Nyanhongo, Chief Executive Stanbic Bank
2021 and beyond
I think Stanbic Bank has positioned itself very well for this year and beyond. Innovations like the Contactless POS machines, QR Code payments, and most importantly zero-rating its banking platform will, I think, definetly help with customer acquisition this year.
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