01 Apr 2019

Standard Chartered Bank Botswana has posted a P24 million profit after tax (PAT) for 2018.

Speaking at an event to announce the bank’s full year results for the period ending 31 December 2018, the chief executive officer (CEO), Mr Mpho Masupe, stated that the bank progressed in executing its prudent strategy, premised on an enhanced client experience, a resilient balance sheet and a strong capital base.  

Mr Masupe stated that the significant losses reported in 2017 had been reversed and that a 11 per cent overall reduction in operating costs, driven mainly by enhanced systems and more efficient internal processes hadbeen achieved. 

He said that the 11 per cent reduction had been recorded despite significant provisions for anticipated business re-organisation expenditures. 

Mr Masupe said driven by an improved credit quality of the bank’s asset book, impairment provisions had been reduced to insignificant levels, thus creating a cleaner space for the planned growth. 

Regarding the bank’s strategy, Mr Masupe said it remained client centric leveraging the bank’s award winning digital platforms at every possible opportunity. 

He highlighted key milestones from the year that the Bank launched its 360o Rewards card loyalty programmme, a first of its kind in the market, complimented by the launch of Platinum and Infinite Credit Cards. 

He further stated that they successfully consolidated Botswana Global Banking and Commercial Banking segments to offer a much more efficient solution delivery model to their corporate clients, adding that they continued to champion the enhancement of their digital platforms further expanding the capabilities offered to their personal and corporate clients alike. 

Mr Masupe said they found opportunity for greater efficiency in their service delivery in a number of their retail branches, adding that the Bank would soon be rolling out deposit taking Automated Teller Machines (ATMs) across the country to further consolidate their convenient banking offering. 

Mr Masupe pointed out that their efforts earned deserved recognition from global industry awards as well with Standard Chartered Bank Botswana earning two accolades of the Best Consumer Digital Bank, Botswana 2018 by Global Finance in December 2018, and Best Bank for Loyalty Programme Botswana 2018 by the Global Banking and Finance Review Awards 2018 in December 2018.

He mentioned that for 2019 they continued the momentum of recognition having been awarded the 2019 Best Bank in Botswana by Global Finance in March.

He said looking into 2019, the bank’s team could confidently roll out the next phase of Botswana’s strategy that was greatly focused on the digital agenda through new products and product enhancements, which would create real-time convenience and access for customers whilst yielding greater cost-to-service efficiencies for the bank. 

Furthermore he said that they had exciting initiatives to increase participation across business segments allowing more individuals and businesses to experience international banking in Botswana, “all of which is not short-term fixing but long term growth at both the top and the bottom line”.

Presenting the results, Standard Chartered Bank Botswana Limited Chief Financial Officer, Dr. Mbako Mbo highlighted that the bank’s performance was a reflection of a careful execution of a relevant strategy. 

“Following the impacts to performance in 2015, 2016 and 2017, management developed a strategy that was centred around building greater resilience in the balance sheet to absorb any unexpected shocks from within the tight market environment” he said.

Dr Mbo said simultaneously, the strategy sought to prepare all business segments for sustainable growth, which they achieved and reported a profit for the year.

Dr Mbo further outlined that whilst some consolidation still remained, the bank’s strategy was already bearing fruit and the business outlook remained positive. 

“Profitability is not yet at the levels that the bank aspires or is accustomed to, but the business remains on a trajectory towards decent levels of profits.  The bank’s liquidity and capital positions have substantially stabilised compared to the prior year, with capital adequacy boosted to 22 per cent by an additional capital injection of P400 million from Group,” Dr Mbo stated. ENDS