04 Oct 2019

Botswana Stock Exchange (BSE)-listed Standard Chartered Bank Botswana has registered an overall growth of 20 per cent to P33.1 million in profit before tax for the half year ending 30 June, 2019.

In a press release, the bank says it was able to reduce operating costs by 14 per cent despite the key investments made during the period for the major roll out of the digital bank.

The bank says its management strategy to secure more sustainable business portfolios saw overall client deposits grow by six per cent and an overall eight per cent growth in the balance sheet over the 12-month period. The business foundations too have been secured with capital adequacy stable at 19.4 per cent and an asset to deposit ratio of 63 per cent.

On the results, the bank’s chief financial officer, Dr Mbako Mbo says following on from the necessary turnaround strategy the bank is geared for growth.

“Registering a successive period of profitability following previously impacted performance pays testament to the success of management’s turnaround strategy. We can now more confidently accelerate businesses knowing that they are leveraging off more resilient, sustainable and focused portfolios.

Profitability is not yet at the levels that the bank expects, but we can confidently say that the fundamentals have been secured,” he said in the release.

On the bank’s performance, chief executive officer, Mr Mpho Masupe said the bank was ready to accelerate bolder business steps.

“The positive results that have been realised in our financial performance allow us to now be bolder and quicker in our roll out of products, services and enhancements to the market. We have already demonstrated this, in the first half of 2019.

We have augmented our personal loan offering by increasing limits to a market-first of P600 000 with record levels of uptake from within the market,” Mr Masupe said. Further, he said they had enhanced bank assurance offerings through strategic partnerships with key industry players and prominently launched Botswana’s first digital retail bank.

The revolutionary digital retail bank, he added, accessed through the SC MOBILE Botswana App, has opened up their reach and created depth in demographics where they had been lagging.

“The digital bank has given prospective clients the control of opening a bank account in 15 minutes from their smart device without ever needing to step into a branch. From which, clients have access to growing platform of over 70 services, discounts through alliance partners and greatly affordable banking services,” he added.

Again, he said market uptake had been strong and funding levels for the digital bank had been impressive, adding the nature of their deliberate strategy to disrupt through digital innovation meant that the platforms were continually being enhanced and refined through usage with benefits sitting in the palms of customers both through innovation cost of service. ENDS