Stanbic Bank Botswana’s objective of enhancing its balance sheet in 2014 has shown positive results, with a strong and adequately capitalised balance sheet for the year ended 31 December 2014.
The year 2014 was very challenging from both endowment pressures and internal processes point of view. This resulted in the Bank’s income declining by 9% from P813 million in 2013 to P666 million in 2014.
The internal pressures resulted from the processes of embedding a new core banking platform and the associated change management processes. This major investment in IT-related services impacted operating costs during the year, resulting in an increase of 15% to P438 million in 2014. The rollout impacted customer experience adversely and hence affected the volume of transaction.
“I wish to sincerely thank our customers for their continued loyalty and patience during the implementation of our banking system. I trust that they see the benefits of the new system, such as enhanced Internet Banking, e-statements, Cellphone Banking, SMS and Email Alerts amongst others,” said Leina Gabaraane, The Chief Executive of Stanbic Bank Botswana.
The level of impairment charges to the income statement improved relative to 2013 by 15% to P104 million. This was driven by close monitoring of credit quality, analysis of portfolios, strategic initiatives to manage rehabilitation and recoveries.
“The above external and internal factors resulted in a reduction in total comprehensive income by 61% during the year under review,” said Gabaraane.
In view of the tough operating conditions and through deliberate management decision, the balance sheet growth was static at 2% to P10.9 billion. The Bank’s liquidity position is prudently managed and remains within statutory limits. Despite these challenges, the Bank remains committed to contributing to the growth of the economy and Moving clients Forward. This commitment is fully supported by the capital base of the Bank, with capital adequacy ratio at over 20%.
“The year 2015 is promising,” said Gabaraane. “We already see a number of internal improvements and the most exciting is how we are able to leverage the full potential of the new core-banking systems, to support new innovative products and service excellence to our committed customers. The focus for 2015 is on re-building our customer confidence and improving the banking experience. Improved customer service efforts will be complemented by the new product rollout such as Instant Money transfer services, DSTV Instant connection and BPC Prepaid Electricity amongst others,” said Gabaraane.
“We will continue with our current position of prudently managing growth to ensure that our balance sheet maintains its strength and we are able to offer the market solid, innovative banking solutions,” he said.