Emmerson Njanjamangezi, Group Features Editor 
STANBIC Bank Zimbabwe (Stanbic) says net interest income for the half year ended June 30, 2022 grew by 66 percent, anchoring the bank’s revenue growth.
The financial institution’s chief executive, Solomon Nyanhongo, said the growth in net interest income was largely spurred by the strong growth in interest earning assets as new lending assets were written compounded by the upward review of interest rates to 200 percent during the period under review.
Stanbic Bank incoming CE – Solomon Nyanhongo
“Fee and commission income for the period increased by 21 percent from $7,8 billion in 2021 to $9,5 billion largely underpinned by the improved volumes of transactions being processed on our various service channels,” Nyanhongo said in a statement accompanying the group’s financials.
“The bank’s trading income improved, supported by the better trading activity in the market combined with revaluation gains recorded on foreign currency positions.”
For the period under review, Stanbic posted an inflation adjusted profit of $11,2 billion, up from $3,5 billion in the comparative period in 2021.
On a historical cost basis, the bank recorded a profit of $22,2 billion for the period under review in comparison to $2 billion in the prior period.
The Standard Bank Group subsidiary shrugged off the difficult economic environment mired in inflationary pressures and a myriad of other operating challenges.
Stanbic chairman Gregory Sebborn said the strong set of results were driven by the institution’s proactive response to the growing working capital requirements from customers through the provision of lending facilities in both local and foreign currency at a time when the cost of doing business had been trending upwards.
“This was coupled with revaluation gains recorded on the bank’s foreign currency positions combined with fair value adjustments on investment properties and the ZW$’s continued weakening against the US$ also contributed significantly to the performance.
“In addition, the level of business activity that was experienced during the period improved as business operations normalised after the two-year Covid-19 era eased,” said Sebborn.
Stanbic ended the period under review with a qualifying core capital of $32 billion, surpassing the local currency equivalent of the required US$30 million regulatory minimum.
The bank’s trading revenue improved, supported largely by better trading activity in the market combined with revaluation gains recorded on foreign currency positions. newsdesk@fingaz.co.zw
