One of the country’s leading financial enterprises, Standard Bank Plc has announced the final payment of K10.5 billion or K44.74 per share in the highest local banking profit-after-tax record for 2020.
In a joint statement accompanying the bank’s 2020 annual report, Standard Bank board Chairperson, Dr. Ngeyi Kanyongolo while acknowledging the negative effects of Covid-19, said the bank posted a strong set of results and would continue to drive innovation aiming to safeguard its current performance.
“The group continues to focus and drive digitization in order to improve customer experience, cost rationalization, and investing for the future,” reads in part the joint statement.
According to the bank head of Marketing and Communications, Thoko Unyolo, the bank has posted an increase in profit after tax by 50 percent to MWK23.7 billion in 2020.
This reflects the resilience of its business despite a challenging operating environment and subdued economic activity due to the COVID-19 pandemic.
Said Unyolo: “The bank’s consolidated results for the year ended 31 December 2020, show that the 2020 net profit was 50 percent above that for 2019 (MWK15.9 billion), owing to growth in net interest income as a result of growth in deposits and its investments and loan book.
Net interest income grew by 6 percent to MWK41.2 billion in 2020, up from MWK38.8 billion, with financial investments growing by 42 percent while customer deposits were up 30 percent.”
“2020 was a challenging year due to the impact of the pandemic which affected the economy and operations of most businesses. However, despite the uncertain and challenging operating environment, the Group posted a set of strong results,” said Unyolo quoting the statement.
She said that the Bank Plc has noted that the overall economic growth in Malawi remained weak due to the Covid-19 pandemic and a volatile political environment that followed the Presidential elections.
“It forecasts that Covid-19 will likely continue to affect business growth despite a good agricultural season, which could help offset the negative effects,” she said.
At the micro level, she explained, Standard Bank notes that the pandemic hampered the growth of its non-interest revenue due to reduced business activity and a 40% reduction of fees on internet banking, mobile payments and other related services as a cushion to customers on COVID-19 impact.
In contrast with 2019, and prior to the Covid outbreak, Standard Bank’s non-interest revenue was three percent above 2018 levels due to growth in transaction volumes.
Standard Bank notes that the Covid-19 pandemic will continue to threaten prospects throughout 2021.
“The negative economic effects of the COVID-19 pandemic will likely continue in 2021.
Currency pressures are expected to continue largely driven by weak foreign currency inflows which can be partly attributed to the ongoing pandemic,” adds Unyolo.
Notwithstanding, the negative effects of the pandemic, Standard Bank says the earnings per share grew by 48 percent from MWK68 in 2019 to MK101 in 2020.
‘New Board Members’
In the same vein, Standard Bank has also announced the appointment of new directors to its board.
The appointment of directors—namely Dr. Rachel Sibande, Mr. Philip Madinga and Mr. Alex Mkandawire—is approved following today’s Annual General Meeting at Bingu International Conference Centre (BICC) in Lilongwe, at which shareholders have also adopted the bank’s consolidated financial results for the year ended December 31, 2020.
The three are eminent leaders in their respective fields of business and technology.
Madinga, a career banker was recently appointed as the bank’s new Chief Executive Officer replacing William le Roux.
Tech specialist, Sibande is one of the country’s young women technology leaders under 40, while Mkandawire brings a combined 25 years’ worth of experience in financial management and auditing.
On dealing with the risk of doing business in the Covid-19 environment, Standard Bank says it invested a total of MWK107 million for managing the pandemic in all the country’s referral hospitals as well as aiding online learning at Kamuzu University of Health Sciences (KUHES).
Due to Covid-19 restrictions, the AGM was held in a hybrid manner with the board and few stakeholders sitting at the Bingu International Conference Centre while the rest of participants joined virtually.
‘The Significant Role’
Standard Bank PLC is part of the Standard Bank Group, Africa’s largest bank by assets.
Standard Bank Group reported total assets R2.3 trillion (about USD163 billion) at 31 December 2019, while its market capitalisation was R277 billion (USD20 billion).
The group has direct, on-the-ground representation in 20 African countries and in 5 global financial centers. Standard Bank Group has more than 1 100 branches and 9 000 ATMs in Africa, making it one of the largest banking networks on the continent. It provides global connections backed by deep insights into the countries where it operates.
Standard Bank Plc provides the full spectrum of financial services. Its Corporate & Investment Banking (CIB) division serves a wide range of requirements for banking, finance, trading, investment, risk management and advisory services.
Corporate & Investment Banking delivers this comprehensive range of products and services relating to: investment banking; global markets; and global transactional products and services.
Standard Bank’s corporate and investment banking expertise is focused on industry sectors that are most relevant to emerging markets.
It has strong offerings in mining and metals; oil, gas and renewables; power and infrastructure; agribusiness; telecommunications and media; and financial institutions.
Standard Bank Plc Personal and Business Banking unit (PBB) offers banking and other financial services to individuals and small-to-medium enterprises.
PBB serves the increasing need among Africa’s small business and individual customers for banking products that can meet their shifting expectations and growing wealth.
Standard Bank Plc, previously known as the Commercial Bank of Malawi is a subsidiary of the Standard Bank Group. It was registered as a commercial bank on 15 March 1969.
The start-up share capital was K2.5 million and the founder shareholders were the Malawi Development Corporation (20%), Press Holdings Limited (20%) and Banco Pinto Sotto Mayor (60%).
The first branch was opened in Limbe on 11 April 1970. It first listed on the stock market in January, 1998.
In 20001, Standard Bank group bought 60.18% stake in commercial bank and became the majority shareholder.
Over the years, Standard Bank has played a significant role in building the economy of Malawi through financing deals in Mining, Power and infrastructure, Agriculture and Retail sectors.
It has over 50 years of local market knowledge and offers best banking solutions for large companies, Small and Medium entreprises as well as individuals.
Standard Bank has 27 branches and over 650 employees.Follow and Subscribe Nyasa TV :