21 Aug 2016

Chief executive officer of Standard Chartered Bank Botswana says the significant earnings recovery realised in the first half of the year have culminated in the first half earnings exceeding total earnings for 2015.

Speaking at the bank’s 2016 half year results recently, Mr Moatlhodi Lekaukau said the business had continued to show resilience amidst a challenging trading environment which had persisted from 2015 into the current year.

He indicated that operating expenses were well controlled with cost to income ratio at 75 per cent against 80 per cent for the full year in 2015.

“The Group has further strengthened its capital position, tightened risk tolerance and established more robust controls as it continues to focus on driving initiatives to realise long term sustainable gains,” he said, adding that the balance sheet continues to strengthen with a 12 per cent increase in the six months from December 2015.

Mr Lekaukau further said the Group’s corporate and institutional banking segment had been impacted by subdued growth in transaction and financial markets, which had been most affected by trading environment, particularly in the mining sector.

“However, the segment has successfully supported key client transactions in the market, contributing to overall progress and development in the economy, as the business assisted clients across the value chain,” said Mr Lekaukau.

He noted that the bank’s new commercial banking business performed well in 2016 and continued to show good potential.

“The segment registered a 16 per cent increase in total income,” he said.

While 2016 is expected to also be a challenging year, Mr Lekaukau said the strategic measures undertaken in 2015 had positioned the Group well for growth.

He said the commercial banking value proposition had been enhanced to enable the business to serve clients better.

“The Group’s retail banking business is now better aligned with core customer segments and has started embarking on a programme to enhance service delivery and meet customers’ end to end requirements,” concluded Mr Lekaukau. Ends