Dar es Salaam 11th April 2012: Stanbic
Bank Tanzania has announced an annual growth of 63.3% on headline earnings for the
year 2011.
The headline earnings were
achieved with return on earnings (ROE) increasing to 20% in 2011 from 13.8% for
2010.
Commenting
on the financial report Stanbic Bank Managing Director Bashir Awale said that
2011 was a good year for the bank as the bank achieved good results in a
period where there was a slowdown in the economic activity due to the effects
of the global crisis which resulted in a significant rise in inflation, as well
as tight liquidity constraints.
” We are very happy with our efforts in 2011; we made
very good progress in the year, delivering a much improved set of results.
We have made significant growth in our headline earnings. The bank achieved
growth in assets, trade business as well as fees and commission. We also
significantly contained our costs which led to achieving these good results.”
said Awale.
The
growth in headline earnings was mainly due to increase in customer Loans and
advances, trading portfolio and effective cost management and control. Loan
book grew from 324b to 464b (43% growth) and thus an increase in Interest
Income by 51%.
The
bank grew its trading book significantly and as a result trading income grew by
30%. Fees and Commission line went up by 22% following booking of major deals
during the year. Cost to income ratio was contained from to 59% this year and
therefore reflecting an improvement on how we efficiently generate value to the
shareholders.
Furthermore,
the bank is aiming to be a leader on non interest income line particularly
through its re-focused Investment banking space. The Bank won key landmark
deals during the year which also led to winning various awards.
During
the year, Stanbic Bank secured a $250m infrastructure loan to the Government of
Tanzania, a $85m syndicated loan to Helios Tower Tanzania; key advisory
mandates in oil & gas as well as manufacturing. Stanbic also played a major
role in the Precision Air IPO and EABL’s share sale. The successful
implementation of the US 250 million loan to the government led to Stanbic Bank
Tanzania winning the EMEA Finance Award for Best Investment Bank in Tanzania 2011.
Awale
said that “Our experience in Investment Banking and local knowledge of the
Tanzanian market allows us to successfully execute highly structured
transactions. Being part of one of the largest banking group in Africa Standard
Bank, also gives us an edge in the market because Standard Bank has a large
geographical footprint and we have access to funds as well as international
expertise.”
Stanbic Bank Tanzania Ltd is a full
commercial service bank with a well-defined emphasis on providing facilities
and services to the public and private sector corporations, airlines,
diplomatic missions, pension funds and non-governmental organizations.
Since
its establishment in Tanzania in 1994 after buying out Meridian BIAO Bank,
Stanbic Bank (T) has been at the forefront in the development of the country’s
financial markets.
The
Bank currently boasts nine branches in all of the country’s important economic
zones namely Dar-Es-Salaam (five branches), Arusha, Mwanza, Mbeya and Moshi
with a total staff complement of more than 300 employees.
Standard
Bank Group is the largest African bank by assets and earnings. We aim to build
the leading African financial services organisation using all our competitive
advantages to the full. We will focus on delivering superior sustainable
shareholder value by serving the needs of our customers through first-class,
on-the-ground operations in chosen countries in Africa. We will also connect
other selected emerging markets to Africa and to each other, applying our
sector expertise, particularly in natural resources, globally. We operate in 17
countries on the African continent, including South Africa, and 13 countries
outside Africa with an emerging market focus.
Standard
Bank has a 150 year history in South Africa and started building a franchise
outside southern Africa in the early 1990s. In recent years, Standard Bank has
concluded key acquisitions on the African continent in Kenya and Nigeria.
Africa is at our core and we will continue to build first-class on-the-ground
banks. The group has more than 1 000 branches on the African continent
and representation in key global financial centres.
For
further information visit: www.stanbicbank.co.tz