Standard Bank Malawi sustains profit momentum
Despite a difficult operating environment characterised by high interest and inflation rates, which hampered borrowing and consumption, Standard Bank Malawi says it will sustain its healthy profit record.
In 2014, the Malawi Stock Exchange (MSE)-listed bank recorded an increase in profit after-tax to K12.2 billion (US$27.1 million), according to the bank’s annual report released at its annual general meeting (AGM) in Lilongwe last week.
In the report, chief executive officer Andrew Mashanda and board chairperson Rex Harawa say despite the economy recording sustained high interest rates, a volatile exchange rate and double digit inflation averaging 23.7 percent, the bank’s balance sheet registered strong growth on a year-to-year basis.
“Total assets grew 15 percent over the same period in prior year emanating from an eight percent growth in customer deposits. The group delivered profit after-tax of K12.2 billion in 2014 despite the challenging operating environment. This represents a two percent growth on 2013,” reads the report.
The bank’s management team strategy is to continue focusing on ensuring prudent capital management, superior customer service and competitive pricing while containing costs, according to the report.
“We will also focus on efficiency in our processes and timely execution in our service and product offering.”
The bank’s directors have recommended a final dividend of K10.68 per share.
In the year, the bank provided a $30 million (about K13.5 billion) revolving facility for the importation of fuel, $20 million (about K9 billion) funding of the Malawi government’s backed fertiliser deals and also provided $14 million (K6.3 billion) in agricultural loans.
