Standard Chartered Bank Zambia Plc Reports 76% YoY Growth in Profit After Tax, Driven by Strong Interest and Net Trading Income

Published On: September 8, 2023Company: Standard Chartered Bank Zambia Plc (SCZ.zm)
What was the primary determinant of the substantial 76% YoY growth in profit after tax for Standard Chartered Bank Zambia in H1 2023?
The significant profit increase was mainly due to a 28% growth in interest income and a 46% increase in net trading income. Also critical was the impairment recovery of ZMW 131m credited to expected credit losses recovery on government securities.

Summary

  • Standard Chartered Bank Zambia reported a robust performance in H1 2023, with a year-to-date profit after tax of ZMW 292m, equivalent to a 76% YoY growth.
  • The Bank saw a 28% growth in interest income YoY, thanks to increased income from banks, financial institutions and interest income from loans and advances.
  • Net trading income shot up by 46% YoY, owing primarily to realised and unrealised trading gains on derivatives and FX trading.
  • The bank reported an impairment recovery of ZMW 131m, a significant increase from ZMW 38m in 2022 due to Expected credit losses (ECL) recovery on government securities.
  • On the downside, operating expenses saw a 15% increase, largely due to staff costs rising in line with inflation.
  • The Bank’s balance sheet remains robust with a solid liquidity position and healthy capital adequacy ratio.
  • A significant 6% YoY growth was recorded for the balance sheet, increasing from ZMW 13.4b to ZMW 14.2b.
  • The report attributes this boost to a 13% growth in Loans and Advances, driven mainly by momentum on Mortgages (75%) and Personal Loans (38%).
  • Despite a 29% decrease in Investment securities due to the bank’s preference for short-term securities, total asset growth was not severely affected.
  • Liabilities increased by 5%, driven by a 74% surge in amounts payable to non-group banks. Customer deposits also saw a 5% YoY increase.

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About Standard Chartered Bank Zambia Plc (SCZ.zm)

Standard Chartered Bank Zambia Plc is a leading name in the financial services sector in Zambia. It offers a wide range of services and products, including savings and current accounts, loans, credit cards and treasury services. Standard Chartered Bank Zambia Plc is listed on the Lusaka Securities Exchange

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