Standard Bank Malawi posts strong 6 months results

Standard Bank Malawi Limited has posted strong half year results and says it has realised its objectives despite the challenging operating environment in the first half of the year.

In its 6 months statement, the commercial bank boasts of a serious 142.9 percent jump of interest income to K10.2 billion (half year 12: K4.2 billion).

“Non-interest revenue almost remained stagnant, closing the half year at K7.3 billion (half year 12: K7.1 billion), translating into a slight 2.8 percent increase. The bank has ended up reporting an increase of 32.6 percent on bottom-line earnings at K5.7 billion (half year 12: K4.3 billion),” Standard Bank said.

The bank’s balance sheet has registered a growth of 20.5 percent on total assets at K128 billion (half year 12: K97.2 billion) while loans and advances to customers increased modestly by 15.3 percent, closing the period at K51.3 billion (half year 12: K44.5 billion).

Chimwemwe Matonga: Standard Bank PRO
Chimwemwe Matonga: Standard Bank PRO

This related positively with deposits from customers which jumped by 32.6 percent at K99.6 billion (half year 12: K75.1 billion).

The bank’s loans and advances to other banks grew by 75.4 percent at K24.2 billion (half year 12: K13.8 billion) while deposits from banks took a downward movement of 50 percent to close the period at K0.7 billion (half year 12: K1.4 billion).

Standard bank has closed the half year with a 33.3 percent increase on Earnings Per Share (EPS) at 2,662 tambala (half year 12: 1,997 tambala) which results into an EPS of 4,404 tambala rolling 1y.

The bank’s board of directors has made a decision to pay an interim dividend of K9.37 (half year 12: MK9.37 per share). With a final dividend of K14 per share paid at the end of Financial Year 2012, the company has a rolling dividend payout of K23.37 per share and effectively a dividend yield of 13.06 percent.

In terms of outlook, the bank said it expects the economy to continue recovering in the second half of the year 2013 as the inflation rate is expected to continue its downward trend.

Further to this, Standard Bank said it expects the exchange rate to remain generally stable but a gradual depreciation is expected given the onset of the lean season late in the third quarter. It however plans to continue exercising prudential liquidity management in order to ensure that the business is liquid and soundly capitalised.

As of last week Standard Bank shares were trading at K179 per share at the Malawi Stock Exchange.

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