Wednesday, April 10, 2013
Standard Chartered Bank in Tanzania records profit for 2012
THE International Standard Chartered Bank also operating in Tanzania has announced a tenth consecutive year of its income, profit and dividend growth and highlighted a strong local performance reports for Tanzania for 2012 year trading period. Speaking during a media round table on Tuesday this week in Dar es Salaam, the Chief Executive Officer for Standard Chartered Bank Tanzania Ltd Liz Lloyd said that, in Tanzania the bank has shown the outstanding performance with a tremendous growth in profit for 2012 trading period. She said that, for the trading period under review the pre-tax profit has slightly increased from Sh. 47.79 billion to Sh. 50.74 billion. This is an increase of 6 percent. Interest income has grown up by 47 percent from Sh. 58.15 billion to Sh. 85.62 billion. However, she noted that, the bank’s interest expense has also increased and this is by 118 percent from Sh. 12.5 billion to Sh. 27.4 billion. The increase of interest expense is due to the increase in interest rates the bank is offering to its customers. The bank’s balance sheet is in good shape, the CEO attributed with the facts that are highly liquid and well capitalized having retained 100 percent of the 2011 profits Sh. 35.5bn/- as well as capital injection by group of Sh. 23.5 bn/- July last year. She noted that, this tie with the bank’s growth strategy and brand promise. With operations in many of the world’s most dynamic economies, the bank now has 26 markets delivering over $ 100 million income, the group is increasingly generating income through more effective use of the bank’s network as trader grows strongly across its integrated market networks.
In 2012 over 50 percent of the clients’ income in wholesale banking was generated outside of the home market country of the bank’s clients. At the same time consumer banking is benefiting from a fast-growing middle class as these economies expand. Speaking at the global level, the Banks’ Chairman Sir John Peace said early this week that, the bank is entering in the New Year with strong momentum in businesses as this comes from a range of markets across both wholesale and consumer banking. He says Africa and China performed particularly strongly noting that China business and Africa wholesale banking have both reached $ 1 billion of income for the first time. Income growth rates were also at least ten percent in Hong Kong, Indonesia, Malaysia and the Americas, UK and Europe region. He says China is now the largest generator of network income, and the bank is benefiting from the trade and investment links across Greater China as the region continues to grow and converge. The bank is having 100 branches and sub branches across 25 cities and it still continues to invest within its network systems. According to him, Africa’s income grew by 15 percent to $ 1.59 billion. Ten markets delivered double digit income growth, including Kenya up 34 percent, South Africa up to 28 percent, and Ghana up to 20 percent, Zambia up to 19 percent and Nigeria up to 13 percent. However, he further noted that bank’s clients have generated 8 percent income growth in wholesale banking, commercial banking which accounts for 54 percent of clients income was up strongly on the back of growing trade and investment flows to and from the main banks’ markets. Standard Chartered bank is a leading international banking group which operates in over 150 countries in the world. The bank opened its doors during British colonial rule in 1917 in the then Tanganyika territory. It closed up its operations in the country few years after independence time in 1967 during Arusha declaration which adopted Self Reliance and Socialism ideological policies.