Stanchart profits jump 59%
Pauline Dikuelo | Tuesday April 16, 2024 09:12
Unveiling the group’s financial performance on Wednesday, officials said the growth was primarily driven by transaction banking, strong cash management solutions, migration to digital, trade financing, differentiated and high-yielding derivative solutions, and robust securities services offerings. In the last financial year, SCBB managing director, Mpho Masupe said the bank delivered a strong set of financial results with excellent performance in income and profit before tax.
“This outstanding performance was driven by the focused execution of our ambitious three-year strategy, which is in its second performance and proving to be fit for purpose, in this dynamic operating environment,” he said. Customer total loans and advances increased by 10% to P8.6 billion largely driven by facility utilisation within the Corporate, Commercial Institutional Banking (CCIB) segment. The CCIB portfolio comprises banks and non-bank financial institutions, government and government-related enterprises, and multinational corporations and development organisations.
Consumer, Private and Business Banking assets remained relatively flat year-on-year, with marginal growth in personal loans. The bank’s strategic intention to drive short-term loans is expected to maintain a resilient asset book. During the reporting period, income from affluent and business client segments grew by 49% and 25% respectively driven by a focused product approach and a strong wealth offering. The bank also added local bonds and treasury bills to its retail wealth offering enabling clients to diversify their investment portfolios with more local options.
“We will therefore continue to seek to diversify our income streams by enhancing our customers’ value propositions, which will keep us top of the mind and deepen our clients’ relationships across the broader portfolio,” he said. “The bank focused on ecosystem collaboration across its consumer and corporate segments, which resulted in significant wins in 2023. “This deliberate strategy will continue into 2024.” Masupe said the business remained resilient during the reporting period despite the economic slowdown caused by geo-political tensions and the tightening of monetary policy across countries.
Looking ahead, the MD said SCBB would continue enhancing its digital capabilities while driving its affluent proposition. He said Stanchart would leverage its strength as the go-to bank for mining and sustainable finance advisory services. “In 2024, we will continue to be guided by our three-year strategy, optimise our distribution model through partnerships, drive our brand visibility and enhance employee experience. “We will deliver client-centric services and solutions as well maintain high double-digit Return on Tangible Equity,” he said.