Zambia’s largest bank by asset size Stanbic Bank Ltd has its FY21 earnings revealing exceptional cost efficiency which gave the bank a 93.0% sprint in After Tax Profits (PAT) to K886.9 million year on year. This is according to prudential financial results in the local press on January 31. The blue banks cost to income ratio steeply ebbed 1,370 points to 48.5% from a year ago.
EXCEPTIONAL LID ON EXPENSES CUES EARNINGS
Total income grew 34.6% to K2.92 billion supported by a 32.0% rally in loan & advances income, 37.0% growth in Mark to Market (MTM) gains for duration risk taken in sovereign securities in addition to a 51.0% sprint (to market leadership) in foreign exchange trading earnings line. Fees and commissions rose by a decent 12.3% scaling the banks earnings higher.
However, an exceptionally lean expense base characterized by an albeit infinitesimal 3.3% growth in non-interest expenses gave Stanbic Bank a positive cue on its after tax profitability margin.
A FEW CHANGES IN THE C-SUITE BUT STRATEGY LEGACY CONTINUITY
In October of 2021, Mwindwa Siakalima, a seasoned finance practitioner was named Leina Gabaraane’s successor following his deployment to a new assignment within the Standard Bank Group. Siakalima is not new to the business as prior, he served as Chief Finance and Value Management Officer (CFVMO) very close to the Stanbic strategy.
The blue bank remains market leader in trade finance evidenced by the size of its contingent liabilities second to none to the tune of 3 yards. This has propelled Stanbic’s interest income lines from structured finance trading.
Stanbic remains a major partner in Zambia’s growth agenda financing key sectors ranging from agriculture to mining.
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