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Standard Bank Malawi’s H1 profits up 56%, to pay MK2.5 billion dividend

STANDARD BANK

 

BLANTYRE-(MaraviPost)-Standard Bank has registered a 56% increase in profit to MK12.75 billion in the first six months ending June 30, 2020, the bank’s financial results showed on Thursday. 

They show that shareholders will smile to the bank to share MK2.5 billion in dividends or MK10.65 per share, up from MK2.1 billion (MK8.95 per share) in 2019, an increase by 19 percent.

The bank’s financial performance seems to defy the difficulties that have befallen global and local economies in the wake of the Covid-19 pandemic.

Standard Bank however acknowledges the lingering challenge posed by the virus and Malawi’s inherent political instability in two years of elections. 

“The group registered good performance notwithstanding a challenging operating environment characterized by unstable political environment and Covid-19 pandemic,” reads the statement, co-signed by Chairperson Ngeyi Kanyongolo and Chief Executive William le Roux.   

Overall, Covid-19 has decimated economic activity in Malawi as most formal economic activity faced reduction, and jobs were lost.

On the other hand, economic policy remains under the radar of analysts as they monitor how the new MCP-led government will stir things after winning the June 23 court-sanctioned Presidential election. 

The bank says assets grew by 8 percent as compared to the same period in 2019.

The asset growth was a result of a 5 percent annual growth of our customer base and the funding base, it says. “Growth of customer and funding base corresponded with increased loan and advances by 22%. Likewise, financial investments also grew by 22 % year on year,” reads the report. 

According to the statement, the low interest rate environment prevailed in the first half and resulted in a modest 2% growth in net interest income despite sizeable growth of interest earning assets. 

On the other hand non-interest revenue grew by 17% year on year arising from the bank’s focus on growing the transactional business as well as one off gain on disposal of securities.

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