CEO says all segments are poised for growth
Standard Chartered Bank Botswana CEO, Mpho Masupe, says the bank’s performance in 2017 faced significant challenges from within an already stretched banking environment.
In the latest annual report, Masupe says subdued top line growth and increased costs slowed performance.
“Whilst a reduction in the bank rate by the regulator put pressure on interest margins, it was, ultimately, single big loan impairment in the Corporate and Institutional Banking (CIB) segment that caused the greatest attrition to performance,” Masupe said, adding that these collective factors contributed to the bank recording a loss for the year.
Masupe said the bank suffered diminishing margins as net interest income declined by three percentage points. The margin compression is said to have been led mainly by the increasing cost of deposits.
The bank’s operational expenses, excluding impairment, increased by 15 per cent due to continuing technical support and investment in staff.
“Notwithstanding the low momentum on the operating profit for the year, the bank has shown resilience for growth and overall deposits grew by over 9 percent, to over P13 billion while loans and advances to customers declined marginally by 0.9 percent,” he said.
Masupe said the growth in advances is despite the continued de-risking of the diamond and jewellery sector from Global Banking.
Stan Chart, according to Masupe, has all its business segments poised for accelerated growth.
“Global Banking is carrying a cleaner balance sheet, Commercial Banking is almost breaking even following years of losses since establishment three years ago and can now concentrate on growing the top line,” he said.
Retail Banking is said to be well positioned to accelerate deposit growth and implement non-funded income initiatives through best in the market digital banking solutions. Masupe says overall the balance sheet is well structured to accommodate good growth and take advantage of the opportunities offered by the promising economic activities in Botswana