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Standard Chartered Bank records P403 million in profits

11 Apr 2024

Standard Chartered Bank Botswana has recorded a profit before taxation increase of 59 per cent to P403 million and a 15 per cent increase in operating income to reach P1 billion for the year ended December 31, 2023.

Presenting the financial results Tuesday in Gaborone, the bank’s Chief Executive Officer, Mr Mpho Masupe said these increases were driven by top-line growth, with a focus on driving income growth in high-returning products and delivering double-digit growth in the Corporate, Commercial and Institutional Banking segment (CCIB).

He said the business also achieved 29 percent Return on Tangible Equity (RoTE) and is ahead of schedule to reach its target RoTE of 25 per cent by 2025.

Mr Masupe explained that the bank continued its efficiency drive and has recorded one of the highest growth rates on profitability in the market.

Notably, he said by employing more efficiency measures, the bank improved its cost to income ratio to 64 per cent.

Mr Masupe highlighted the strength of the bank’s digital strategy amid the dynamic economic climate of recent years.

“Our strong financial performance was driven by the execution of our ambitious three-year strategy, which is currently in its second year and proving to be relevant in this dynamic operating environment. The bank’s three-year strategy seeks to optimise our distribution model through partnerships, drive our brand visibility, enhance employee experience, deliver client centric services and solutions, and maintain high double-digit Return on Tangible Equity (RoTE),” he said.

Mr Masupe said in 2023, the bank was able to derive value from its existing client base by offering an enhanced client value proposition, and focused on ecosystem collaboration across its consumer and corporate segments which resulted in significant wins.

He stated that the business had pivoted to driving its affluent proposition and leverage its strength as a go to bank for mining and sustainable finance advisory services, aligning to the national priorities for 2024.

For the Consumer, Private & Business Banking (CPBB) segment, Mr Masupe said the bank continued to make strides in its key strategic priorities of being a digital-first bank for the personal banking segment by harnessing technology to offer payments, financing and wealth management solutions.

He stated that income from affluent and business client segments grew by 49 and 25 per cent respectively in 2023 driven by a focused product approach and its unique wealth offering. Ends

Source : BOPA

Author : Marvin Motlhabane

Location : Gaborone

Event : Presentation of results

Date : 11 Apr 2024