Standard Bank Malawi sustains profit momentum: Net profit up at K12.289 billion

Despite a difficult operating environment characterized by high interest and inflation rates which hampered borrowing and consumption, Standard Bank has announced sustaining its healthy profit record.standard bankprofit

In 2014, the bank recorded an increase in profit after tax to K12.289 billion, the bank’s annual report released at its Annual General Meeting for shareholders, shows. This high level of profitability has been sustained in recent years.

In the annual report, Chief Executive Officer Andrew Mashanda and Chairman Rex Harawa say despite the Malawi economy recording sustained high interest rates, a volatile exchange rate and double digit inflation averaging 23.7%, the bank’s balance sheet registered strong growth on a year-to-year basis.

“Total assets grew 15% over the same period in prior year emanating from an eight percent (8%) growth in customer deposits. The group delivered profit after tax of MwK12.280 billion in 2014 despite the challenging operating environment; this represents a two percent (2%) growth on 2013, which was at MwK12.289 billion,” reads the joint report signed by CEO and Chairman.

The Executive Management team says the bank’s strategy is to continue focusing on ensuring prudent capital management, superior customer service, and competitive pricing whilst containing costs.

“We also focus on efficiency in our processes and timely execution in our service and product offering,” it says.

The directors have recommended a final dividend of K10.68 per share, subject to shareholders’ approval.

The bank provided a US$ 30 million revolving facility for the importation of fuel, US$20 million funding of the Malawi government’s backed fertilizer deals and also provided US$14 million in agricultural loans.

The Malawi economy remains agro-based with fuel and inputs playing a critical role to its sustainability.

During the year under review, Standard Bank also spent K92.5 million worth of corporate social responsibility projects. The money went towards key CSR areas of health, youth development through football and education.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

Sort by:   newest | oldest | most voted
karoda
Guest

The richer will remain rich and the poorer will remain poor

Mpoto
Guest

This is good news. It is an indication that one can invest in Malawi and still make billions.

However I have held my personal bank account at standard bank for years yet i have not received any interest. This interest does not mean anything to me if I have to be honest with myself. It is just a byword or proverbial sound of rhetoric to me.

The business climate is no even in Malawi as it penalized citizens and rewards these externalized institutions like standard bank and illovo. This is why Malawi is the most expensive place to live in the world.

Balamanthu
Guest

At least I got an A in matehematics during my O levels.If profit after tax in 2013 was at MK12.289billion and in 2014 it is MK12.280, how does this translate into 2% increase in profitability over the prior year? Dont cheat us as a country.

hon
Guest

Standard bank too much charges on everything, national Bank is better off. They should reduce charges. Printing a statement is almost the cost of buying the whole bundle of A4 papers eish

g4s
Guest

Kwiba chomene mabanki- 44% interest rate!!! MK1000 charge per withdrawal entry (Visa) card. Servive charge (kupukuta ndi kupanga arrange ndalama every month of MK1000 per account. Mmalo moti castomer alandire interest. Iwo amadula.Ngati simufunsa Interest iwo sapereka.

Atate Rashid
Guest

kuba kwenikweni. What about the depositor who enabled you to make these obscene profits?

shareholder
Guest

Say it again, millions or billions? Is it by design that the reporter uses the the same figure but qualifies it with million in one place and billion in another?

Father of TEMACO
Guest

Gud news

njolomachipilingu
Guest

Ndalama za wanthu zimenezi.Too many gimmiks of getting money from clients.No wonder they are making huge profits

wpDiscuz

More From Nyasatimes