Maravi

Stanbic records K89bn profit

Stanbic records K89bn profit
By Fridah Zinyama
Saturday May 31, 2008 [04:00]

STANBIC Bank Zambia Limited managing director Larry Kalala has said the bank last year recorded a profit of about K89 billion after tax. During a press briefing at Hibiscus Restaurant on Thursday, Kalala said the bank’s profit after tax grew by 53 per cent in 2007. “The bank also achieved a cost income ratio of about 48 per cent and loans and advances grew by 9 per cent to K997 billion,” he said.

Kalala said deposits grew by 9 per cent to about K1.2 billion and return on equity improved to 60 per cent from 47 per cent in 2006.

He explained that the bank was able to accomplish this much growth because the country continued on its strong growth path in 2007.

“Overall, the country recorded a food surplus and mining continued to contribute positively to the economy with fairly stable world prices for copper and cobalt against marginal increase in production and the tourism sector also recorded good progress,” he said.

“Interest rates also continued to drop and are currently at 17 per cent. The average lending rate for commercial banks closed at 24.3 per cent as at December 2007, a drop of 3.6 from 2006.”

Kalala said there mortgage package was also well received and that Stanbic Bank offered the lowest rates on the market.

And on the exchange rate, he said the kwacha continued to appreciate against the major traded currencies in 2007.

“The general good performance of the economy has also played an important role in improving investor confidence in Zambia,” he said. “Zambia attracted foreign direct investments with pledges totalling to US $1.9 billion as at November compared to US $751 million over the same period in 2006.”

And Kalala said the bank in the first quarter had kept pace of increased customer demand by acquiring space at the new shopping complex opposite Arcades shopping mall to set up a new corporate and commercial branch.

“Ongoing expansion of the ATM network will go a long way in decongesting the branches with 13 more embarked for 2008,” he said Kalala.

Labels: STANBIC

posted by MrK @ 3:05 PM