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Harare - Standard Bank's [JSE:SBK] Zimbabwe-based unit Stanbic Bank reported a 15% growth in profit after tax to US$23.9m for the year to end-December 2015.
Net interest income at $42.8m grew 11% from the previous comparable period, while the bank’s fees and commission income rose marginally by 5% to $36m, mainly on increased transaction volumes passing through various banking channels.
The bank’s gross lending book grew by 8% to $272m, largely due to the increase in facility utilisation by customers and the creation of new interest-earning assets.
Chief executive Joshua Tapambgwa said the results were achieved in an operating environment characterised by tight liquidity, declining aggregate demand company closures and job losses.
“All these factors had a negative impact on the banking industry’s performance,” said Tapambgwa, adding that the bank continued to drive financial performance despite the increasingly difficult operating environment.
Stanbic said it will remain focused on identifying cost containment initiatives and eliminating areas of cost inefficiencies in an effort to reduce its cost base.
Nod to prosecute non-compliant directors
Meanwhile, the Zimbabwean government through Youth, Indigenisation and Economic Empowerment Minister Patrick Zhuwao reportedly said government will "go after" assets of directors of foreign-owned companies if a company ceases to operate after failing to submit indigenisation plans timeously.
In a report that appeared in the state media on Thursday, Zhuwao said the move to prosecute directors of non-compliant firms is meant to assist employees who stand to lose employment due to their company's non-compliance.
He said it is the fiduciary duty of company directors to comply with the law and employees who lose their jobs because of non-compliance will be assisted by the government to prosecute the directors in their individual and institutional capacities.
Meanwhile, Reserve Bank of Zimbabwe governor John Mangudya reportedly said the bank is satisfied with the banking sector's compliance levels with the country's indigenisation laws, and focus should be on increasing its role in economic development and empowerment. Foreign banks operating in Zimbabwe include Barclays, Standard Chartered, Standard Bank, Ecobank and Banc ABC.
In a report that also appeared in The Herald newspaper, Mangudya said the indigenisation plans of most foreign-owned banks have been approved, but did not disclose the number of banks which are compliant.
Foreign-owned firms operating in Zimbabwe - including mines and banks - last year were given a March deadline to submit plans on how they are going to comply with the indigenisation law, which requires them to cede at least 51% of shares to black Zimbabweans.
