Standard Chartered Bank Botswana Limited announces its full-year results for the period ended 31 December 2022. The bank is a leading international banking group, with a presence in 59 of the world’s most dynamic markets and serving clients in a further 64.
Standard Chartered Botswana’s Chief Executive Officer, Mpho Masupe commends his team SCB on their efforts on maintaining its laser focus on delivering the Strategy and ensuring a turnaround in some key segments during 2022. “We are extremely encouraged by the growth in platform utilization and see an increase in our clients’ uptake of the Bank’s solutions. While rising interest rates have contributed to our performance, our results were fortified by committed attention to delivering our strategy and our cost management initiatives which have yielded great results,” said Mpho Masupe, CEO of Standard Chartered Bank.
2022 Full Year Financial Highlights:
- Operating income up 22% to P903 million
- Profit before tax P253 million; up 229%
- Profit after tax up 235% to P202 million
- Return on Equity (ROE) improved to 17% from 5.8% in 2021.
- Capital Adequacy Ratio (CAR) at 17% against regulatory requirement of 5%
- Total balance sheet grew by 6% to 16 billion.
- Operating Expenses down by 8%
The Bank has delivered a strong performance as it realized an exponential 229% increase in its profit before tax to P253 million. Diligent implementation of the Bank’s Digitization strategy has resulted in continued sustainable gains with operating income growing 22% and the cost-to-income ratio down from 89% to 67% for the year.
Significantly, SCB notes that this confidence in the delivery of their strategy is reflected in shareholder value, with an increase in share price by 91 thebe to 287 thebe, in the year where the Bank commemorates 125 years of doing business in Botswana as a partner for the growth and prosperity of Botswana and its citizens. These actions coupled with deliberate cost containment actions have delivered further efficiencies across the business.
The Bank has increased access to its banking services across the country through the soft launch of the much-anticipated Agent Banking model which will continue the reduction of foot traffic from the traditional branch network. Digital adoption for the Bank stands at 76% up from 70% in 2021, with 95% of all transactions being carried out through digital channels. These numbers signify the increased comfort levels and fluency of the bank’s clients to transact digitally.
The Corporate, Commercial and Institutional Banking Business (CCIB) segment recorded an income growth of 69% year-on-year, balanced across all product lines, with bottom line profit growing 12x to end the year at P153 million compared to P14 million in 2021. A significant contributor to the success of the segment, was the launch of the Chinese renminbi product, a first-in-market product providing straight-through access to mainland China, as part of its China-Africa corridor deepening strategy. 99% of the Bank’s corporate clients have also successfully transitioned to the Award-Winning and market-leading Digital platform Straight2Bank Next Gen, which enables clients to closely manage a myriad of transactions in real time.
Sustainability continues to be at the core of Standard Chartered’s delivery model, this was evidenced by the launch of the Bank’s first fully Solar powered branch, closely following on the 2021 launch of the Lobatse Express Banking Centre. As part of its corporate citizenship, Standard Chartered also continues to “green” Botswana, having planted 3,000 trees across the country, on its way to a 12,500-tree target in commemoration of its 125-year anniversary.
The Bank’s Consumer, Private and Business Banking segment (CPBB), relaunched the Affluent proposition through a full suite of investments products; Offshore, Fixed Income and Mutual Bonds. This, together with a refresh of the Bank’s engagement plan with its Priority Clients, has seen a 7% increase in the segment’s revenue. Operational efficiencies continue to be at the forefront of the segments delivery which encompassed reskilling and upskilling human resources to take up various roles across the business.