Standard Bank
Profits from Standard Bank’s Swazi operations barely changed year-on-year in 2005 but this obscures a healthy underlying business. Flat earnings growth was mainly due to increased loans provisions, stemming from adoption of International Financial Reporting Standards for the treatment of off-market loans. Indeed, after replacing debenture capital with debt capital, the bank was able to report a rise in RoE from 44.3% to 49.8% at the end of 2005.
“Standard Bank Swaziland remains the largest bank in the kingdom by market share. But given the competition and lacklustre economy, we have done well to grow our loan book and remain profitable,” says managing director Tineyi Mawocha.
Standard Bank holds a 45% share of deposits and 34% share of loans and advances in the Swazi market. “Out net interest margin has been maintained at 7%, which we have sustained in such a depressed economy by improving the functioning of our assets and liabilities committee,” says Mr Mawocha.
The Swazi economy is estimated to have grown by just 1.9% in 2005 and is forecast to slow to 1.2% this year.
The judges also noted Standard Bank’s ongoing corporate social responsibility initiatives, especially providing seed capital to entrepreneurs in poor rural areas.
