STANBIC Bank Zimbabwe has achieved the 2020 capital threshold of $100 million for commercial banks in line with the Reserve Bank of Zimbabwe (RBZ) guidelines.
The Standard Bank Group subsidiary has maintained a steady performance over the years and has bagged a number of accolades for efficient financial service.
An analysis in the recent Top Companies Survey shows that Stanbic Bank was second in terms of profitability and overall third in terms of return on assets and operational efficiency ratios.
As at June 30, 2016, the banks non-performing loans (NPLs) ratio was at about 5 percent and this was well below the market average of 10 percent. The 5 percent non-performing loan ratio was the third lowest while the bank had the third largest total deposits base.
The banks lowest ranking was fifth out of 12, under regulatory capital as at June 30, 2016. However, its regulatory capital position has since improved and was at $ 103 million as at August 31, 2016.
Stanbic Bank has remained robust, defying the turbulent and low growth in the banking sector to record an increase in total deposits from $484 million as at December 31, 2015 to $ 642 million as at August 31, 2016, the bank said in a statement yesterday.
The banks low non-performing loans position has enabled it to earn higher profit after taxation and this has helped strengthen the banks regulatory capital base. This effectively means Stanbic Bank has already complied with the 2020 minimum capital requirements of $100 million.
Stanbic has been voted the best bank in two surveys conducted by two of the countrys leading financial services institutions in Zimbabwe. The bank came out tops in the Banks and Banking Survey as well as in the Top Companies Survey conducted by diversified financial and investment giant, Old Mutual.
The two accolades came at a time the banking sector in Zimbabwe is beset by a plethora of problems, chief among them being a liquidity crunch, which has seen confidence in the sector nose dive to all time low.
Stanbic Bank Zimbabwe Limited continues to outperform on a number of metrics, and this can only be achieved by a strong and dedicated leadership that strives to stick to international banking best practices. We strongly believe that the bank remains on a solid growth path, going forward, wrote the analysts in the surveys.
Stanbic Banks income statement showed a 11 percent growth in net interest income, mainly driven by the growth in its earning assets.
Surprisingly, non-interest income came in lower than prior year despite the massive growth in deposits and this was attributable to decline in transactions due to forex shortages and regulatory directives on charges and surrender requirements on mineral and tobacco exports.
Non-interest income, is however, expected to grow significantly in the next reporting period with the increasing electronic and card transactions as the effects of the cashless banking take its toll.
Internationally, Stanbic Bank was also voted the Best Wealth and Investment Bank at the UK based Wealth and Finance Awards 2016 organised by Wealth & Finance International. Wealth and Finance International is dedicated to providing fund managers, institutional and private investors around the world with the latest industry news across both traditional and alternative investment sectors.
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