StanChart strategy pays off
Standard Chartered Bank Botswana, the only international bank operating in the country, has posted impressive profits for the six months to June 2023, thanks to a successful execution of its corporate strategy which among others, focusses on optimal distribution model, brand visibility, employee experience, among others. This Tuesday, the Chief Executive Officer, Mpho Masupe was over the moon now that the hard work, which included sleepless nights is now paying off, as profit after tax jumped 250 % percent to close at the period under review at P191 million.
“The Bank’s half year income closed at P523 million, up 30% from the previous year, revealing a solid performance on margin income which recorded a decent year-on-year growth of 57%. Our operating expenses were contained to an increase of 4% due to increase in staff costs, which is reflective of the Bank’s strategy to invest in sustainable human capital. Cost to income ratio improved from 75% to 60%,” said Masupe, who among others is credited for turning around the bank from a loss making entity to a more profitable bank it is today.
Furthermore, the CEO explained that they have been able to tame operating costs, without compromising quality. “The Bank’s expense efficiency is core to enabling a positive operating leverage, whilst creating capacity to continue investing into strategic initiatives. Our segments growth in H1 2023 is evidence of how we are evolving to meet our client’s needs and our target to maintain double digit Return on Tangible Equity.” stated Masupe. During the period under review, Standard Chartered continued to push hard with its agency banking. At the moment the bank has signed a deal with Botswana Post, which allows the bank to offer banking services within the latter’s premises country wide. By June 2023, over 60 agency sites of Standard Chrartered were up and running around the country. “We are taking our services to the people, wherever they are,” said Masupe who has been the CEO for 6 years. The lender which is a subsidiary of British bank, Standard Chartered plc, is gunning to have 100 agency banking sites.
As part of the current strategy, the bank continues to engage more with staff, especially in regards to welfare. “Our results could not have turned this way without a hardworking and dedicated team,” Masupe said. As part of staff welfare, Standard Chartered now grants both female and males 20 weeks of maternity and paternity leave(s). “We have realised all employees, regardless of male or female are equal,” The bank will continue to be clients centric. “We work hard to ensure our customers have access to any product or services wherever they are, even outside Botswana,” said newly appointed head, Consumer, Private & Business Banking segment (CPBB), Moses Rutahigwa. He explained that they also have a suit of savings and investments products, in addition to dedicated relationship managers. The bank, also have top notch digital banking platforms which serves both retail and corporate clients.
The commercial, corporate and institutional banking (CCIB) segment continues to report strong performance with total income growing 60% year-on-year and bottom-line profit before tax leaping 300% over the prior year. “This demonstrates that the segment strategy to focus on areas with comparative advantage is yielding positive results. These niche areas are financial institutions, public sector and global subsidiaries,” said the bank. During the period under review, the bank’s share price was the best performing stock on the Botswana Stock Exchange, recording a year-to-date growth of 43.9% by June 2023. The Bank’s share price was trading at P4.13 as at 30 June 2023 from an opening price of P2.87 at the beginning of the year. “We wish to reassure you all, that after 126 years of doing business in Botswana, we are even more committed to ensuring that our legacy remains relevant as we increase our footprint and become more visible countrywide. We are continuing to invest in our distribution network, albeit away from the traditional way of banking. Our personal loan value proposition was recently enhanced, offering clients a maximum loan amount of P700,000, to assist clients with major projects and large bills,” announced the bank.