Stanchart profits rise on turnaround strategy
Pauline Dikuelo | Wednesday March 29, 2017 14:51
Commenting on the results, the bank’s chief executive officer Moatlhodi Lekaukau said despite a challenging year, the initiatives they took to turn around and improve performance have realised significant gains.
“The group remained committed to delivering on medium term strategy into 2016 that was underpinned by people, service delivery, stronger control environment and employee banking. Collectively these have contributed to ensuring that our balance sheet remained resilient whilst creating value for our customers and stakeholders,” he said. In 2016, the bank’s income grew by three percent in the face of the challenging macroeconomic environment while performance was also impacted by a once-off significant impairment charge in retail banking.
He said disciplined focus on costs have created more capacity to invest in key areas of infrastructure and people.
“The balance sheet remains strong and fit for growth in 2017 and beyond. The forecast for the business is looking good and continued investment into this sector is expected to deliver better results into the future,” he said.
The group led the number of marquee transactions, strengthened relationships with sovereigns and parastatals and identified opportunities to connect pools of capital with financing demands across the market.
Lekaukau further said the retail banking has delivered solid performance with the full year revenue up by nine percent in spite of the challenging credit environment. In line with the group’s strategy, the bank opened its 20th outlet last December at Sir Seretse Khama International Airport (SSKIA).
The group’s loans and advances to customers increased by 38% while deposits increased by 19%. Operating profit improved significantly to P77 million from the loss made in 2015 on account of cost efficiencies and improved impairment position.
Furthermore, the group revealed their plans on the ongoing implementation of their revised strategy, which will deliver great benefits to their clients enabling the group to contribute meaningfully to the much-needed growth of the economy.