Stanbic pretax profits up 11%

Mbongeni Mguni | Thursday April 25, 2024 11:57

For the people: Stanbic Bank representatives in Letlhakane during an event. The bank has doubled down on its customer-focus and digital platforms PIC: FACEBOOK

According to the full-year results published on the Botswana Stock Exchange, Stanbic’s corporate and investment banking unit recorded pretax profits of P348.6 million, compared to P258.9 million in the prior year, representing a 35% increase.

Profits within the bank’s business and commercial clients unit fell by about 15% to P167.9 million in the year to December 2023, while the use of data analytics in the personal and private banking unit resulted in improved net interest income growth of six percent despite increased borrowing costs. Directors noted that profitability in the business and commercial client unit was affected by a once-off credit recovery in 2022 that skewed the performance last year.

The directors said despite this, the unit has continued to improve book quality and closes the year with a credit loss ratio of 2.3 percent. Stanbic’s loan book decelerated to P19.3 billion in the year to December 2023, from P20.1 billion in the prior year. Within that, loans to customers rose while loans to other banks retreated.

Total impairment charges ended the year at P109 million against a normalised P110 million charge for 2022. The normalised charge for 2022 excludes the once-off recovery of P98 million for that year. Directors said the impairment charge in 2023 was, therefore, restrained looking at the economic headwinds and growth in customer loans.