Standard Bank Malawi has chalked a 45 percent after-tax profit growth in the year ended December 31 2016, despite operating in a tough economic environment.
Audited financial statements show that the Malawi Stock Exchange (MSE)-listed bank registered a profit after-tax growth of K19.4 billion in 2016 from the previous year’s K13.35 billion.
The operating income grew by 43 percent over the same period last year, which the bank attributes to a 56 percent growth in net interest income driven by growth in loans and advances, the statement shows.
“Non-interest income grew by 22 percent due to increased volumes in the transactional business. Credit impairments increased by 186 percent when compared to prior period due to an increase in the non-performing loan book.
“Despite the higher credit impairments for the year, the group continues to focus on credit risk management and recoveries on written off loans,” reads the financial statement in part.
The profit growth comes amid a high inflationary environment and depreciating currency which the group says continued to negatively impact on operating costs.
The financial statement also shows non-performing credit facilities of K93.5 billion dominated by loans extended to individuals and households, agriculture and manufacturing sectors.
A proposed final dividend of K5 billion, representing K23.31 per share will be tabled at the forthcoming annual general meeting.
The group paid a dividend of K1 billion in September 2016, which represented K4.26 per share.
Standard bank shares are currently trading at K500 per share on the MSE.