Economic Rebound Helps Stanbic's Balance Sheet

By Business Reporter | Monday May 5, 2008 00:00

 

According to its financial results for the 2007 full year, the bank saw growth in profit after tax jump from P89.4 million in 2006 to P110.7 million in 2007. The charge represents a 23.8 percent growth.

The Managing Director for the unlisted bank, Dennis Kennedy, says the improvement, which came as a result of Government's infrastructure development and the current mining boom, increased downstream loan demand across a range of sectors.

'Stanbic Bank Botswana took advantage of the improvement in the economy and positioned itself well and significantly increased its balance sheet,' a statement says
Kennedy says during 2007, the bank established Business Banking in Gaborone, Francistown and Maun.

It also launched a number of new products and services, among them Internet Banking, a Customer Care Centre and auto money ATMs operating from retail outlets, which all proved to be a success.

Two branches in Gaborone were upgraded and relocated. 'As a bank, our group values are central to all we do and in particular, that of placing the customer at the centre of our focus. We have introduced a number of initiatives which have motivated staff, hence their quest to position Stanbic Bank Botswana as the bank of choice in this country,' says Kennedy.

The growth in profit after tax is attributed to a strong growth in the bank's non-interest revenue, which grew by 28 percent, coupled with lower impairment charges. The bank saw a 41 percent growth in advances and loan demand by the end of 2007.

Staff development resulted in operating expenses growing by 19.8 percent while staff costs grew by 27.2 percent as the bank continued to invest in staff and processes to ensure that service levels are maintained to deal with the growth in customer base.

Towards the end of the year, work began on a top class new staff-training centre, which was completed early in 2008. Kennedy forecasts 2008 as a positive year for his bank with positive economic prospects.

'The bank intends to further grow its customer base by opening new branches and introducing more products and services in order to meet the demands of the market.'