Stanbic posts 97% jump in profits

Stanbic Bank, a member of the South African-based Standard Bank Group, has posted a profit after tax of GH¢56.9million in 2012, an increase of 97 percent from last year.

The bank’s total income jumped by 52 percent to GH¢193.74million while operating costs stood at GH¢102.96 million, representing an 8 percent increment. Loans and advances to customers increased by 31 percent to GH¢659.87million, while customer deposits doubled from the previous year to GH¢1.28billion.

Credit impairment charges fell by 8 percent to GH¢12.23 million, and return on equity was 24 percent.

“These results were driven by outstanding performance across all business units, and underpinned by robust client activity and a superior ability to innovate and address the needs of our customers,” Chief Executive Alhassan Andani told journalists at a press soirée after the company held its annual general meeting in Accra last week.

“Additionally, we experienced a significant improvement in the quality of our loan portfolio, the result of a deliberate strategy to focus on our priority segments and key client sets. Our operating costs, however, increased substantially during the year, consistent with significant investments in branch infrastructure and personnel in our Personal and Business Banking (PBB) unit.”

Mr. Andani said the bank will aggressively roll-out new products and services within its PBB unit to enhance its client offering. “We also invested significantly in the branch network, laying the groundwork for the establishment of eight new branches.

Four of these branches will be launched in early 2013, with the remainder set to open by year- end 2013. We also extended the ATM network by 11 additional units to 45 units at year-end.

“Our Corporate and Investment Banking (CIB) unit re¬mained focused on providing cutting-edge solutions for corporate clients operating in the productive sectors of the economy.”

In 2012, the bank’s spending on corporate social responsibility increased from GH¢280,000 in 2011 to GH¢350,379. The areas of participation included mass financial literacy, educa¬tion, entrepreneurship development, health and wellness.

Working in tandem with strategic partners in the media and civil society, the first phase of a much-acclaimed finan¬cial literacy programme was successfully executed. The programme sought to encourage more informed financial decision-making.

The bank continued to support agriculture in a very visible manner. This was crystallised in the sustained support for the annual National Farmers’ Day celebrations since 2007.

“We continued our support for community-based educa¬tional trust funds across the country, and partly financed awards for deserving students at the University of Ghana.

This was in addition to other levels of assistance provided to the university. Several other institutions, especially at the secondary level, received financial support to undertake various projects, including computer labs and infrastructure development.

“Our 2012 results are a testament to the strength of our client franchise and business operations. While we expect the economic environment to be more conducive to business in 2013, we remain cognisant of the keen competitive environment and the changing needs of our client base. We are confident that we are well-positioned to realise the new vision of the bank.

“We expect the continued support of the Standard Bank Group to facilitate the delivery of superior shareholder value. Together, we will grow and move the bank forward,” Andani said.