Malawi Stock Exchange (MSE)—listed financial services provider, Standard Bank Malawi Limited posted K6.1 billion after-tax profit in the period ended June 30, about eight percent above profit achieved during the same period last year.
The bank’s results for the six months period ending June 30 indicates that total income grew by 19 percent over the same period last year due to higher trading revenue and income and loans and advances to customers.
The unaudited financial statements which have been co-signed by the bank’s board chairperson Rex Harawa and other officials indicate that the bank’s continued investment in the business has resulted in a strong set of half-year results.
“Total assets grew 36 percent over same period last year due to a 30 percent growth in customer deposits. Despite a high deposit growth, loans and advances to customers grew 13 percent over same period last year due to high interest rates which impacted customers’ appetite for borrowing.
“The high interest rates also negatively impacted customers’ ability to repay facilities which in turn has led to a 51 percent growth in credit impairment charges,” read the financial statements in part.
Based on the performance of the bank, the board resolved to pay an interim dividend of K2.13 per share totalling about K500 million.
In the year ended December 2013, Standard Bank posted a 52 percent growth in profit to K12 billion from K7.9 billion the year before.
Looking ahead, the bank expects lower interest rate environment to support economic growth in the second half. The bank however notes that there is still risk to rising inflation and interest rates.