Shareholders
LILONGWE, 24TH JUNE 2021 –Further to the highest local banking profit-after-tax record for 2020, Standard Bank Plc today proudly announces the payment of a final dividend of K10.5 billion or K44.74 per share and the appointment of new directors to its board.
The appointment of directors—namely Dr. Rachel Sibande, Mr. Philip Madinga and Mr. Alex Mkandawire—is approved following today’s Annual General Meeting at Bingu International Conference Centre (BICC) in Lilongwe, at which shareholders have also adopted the bank’s consolidated financial results for the year ended December 31, 2020.
The three are eminent leaders in their respective fields of business and technology.
Mr. Madinga, a career banker was recently appointed as the bank’s new Chief Executive replacing William le Roux. Tech specialist Sibande is one of the country’s young women technology leaders under 40, while Mkandawire brings a combined 25 years’ worth of experience in financial management and auditing.
In a joint statement accompanying the bank’s 2020 annual report, Standard Bank CE and Chairperson Ngeyi Kanyongolo while acknowledging the negative effects of Covid-19, said the bank posted a strong set of results and would continue to drive innovation aiming to safeguard its current performance.
“The group continues to focus and drive digitization in order to improve customer experience, cost rationalization, and investing for the future,” reads the joint statement.
It reports an increase in profit after tax by 50 percent to MWK23.7 billion in 2020, reflecting the resilience of its business despite a challenging operating environment and subdued economic activity due to the COVID-19 pandemic.
The bank’s consolidated results for the year ended 31 December 2020, show that the 2020 net profit was 50 percent above that for 2019 (MWK15.9 billion), owing to growth in net interest income as a result of growth in deposits and its investments and loan book.
Net interest income grew by 6 percent to MWK41.2 billion in 2020, up from MWK38.8 billion, with financial investments growing by 42 percent while customer deposits were up 30 percent.
“2020 was a challenging year due to the impact of the pandemic which affected the economy and operations of most businesses. However, despite the uncertain and challenging operating environment, the Group posted a set of strong results,” reads the statement.
The bank notes that overall economic growth in Malawi remained weak due to the Covid-19 pandemic and a volatile political environment that followed the Presidential elections. It forecasts that Covid-19 will likely continue to affect business growth despite a good agricultural season which could help offset the negative effects.
At the micro level, Standard Bank notes that the pandemic hampered the growth of its non-interest revenue due to reduced business activity and a 40% reduction of fees on internet banking, mobile payments and other related services as a cushion to customers on COVID-19 impact.
In contrast with 2019, and prior to the Covid outbreak, Standard Bank’s non-interest revenue was three (3) percent above 2018 levels due to growth in transaction volumes.
Standard Bank notes that the Covid-19 pandemic will continue to threaten prospects throughout 2021.
“The negative economic effects of the COVID-19 pandemic will likely continue in 2021. Currency pressures are expected to continue largely driven by weak foreign currency inflows which can be partly attributed to the ongoing pandemic,” reads the statement.
Notwithstanding the negative effects of the pandemic, Standard Bank’s earnings per share grew by 48 percent from MWK68 in 2019 to MK101 in 2020, shows the statement.
On dealing with the risk of doing business in the Covid-19 environment, Standard Bank says it invested a total of MWK107 million for managing the pandemic in all the country’s referral hospitals as well as aiding online learning at Kamuzu University of Health Sciences (KUHES).
Due to Covid-19 restrictions, the AGM was held in a hybrid manner with the board and few stakeholders sitting at the Bingu International Conference Centre while the rest of participants joined virtually.
ENDS
For inquiries, contact;
Thoko Unyolo – Head, Marketing & Communications
Cell: +265888748307;
E-mail: Thoko.Unyolo@standardbank.co.mw
About Standard Bank PLC (Malawi)
Standard Bank PLC is part of the Standard Bank Group, Africa’s largest bank by assets.
Standard Bank Group reported total assets R2.3 trillion (about USD163 billion) at 31 December 2019, while its market capitalisation was R277 billion (USD20 billion).
The group has direct, on-the-ground representation in 20 African countries and in 5 global financial centers. Standard Bank Group has more than 1 100 branches and 9 000 ATMs in Africa, making it one of the largest banking networks on the continent. It provides global connections backed by deep insights into the countries where it operates.
Standard Bank Plc provides the full spectrum of financial services. Its Corporate & Investment Banking (CIB) division serves a wide range of requirements for banking, finance, trading, investment, risk management and advisory services. Corporate & Investment Banking delivers this comprehensive range of products and services relating to: investment banking; global markets; and global transactional products and services.
Standard Bank’s corporate and investment banking expertise is focused on industry sectors that are most relevant to emerging markets. It has strong offerings in mining and metals; oil, gas and renewables; power and infrastructure; agribusiness; telecommunications and media; and financial institutions.
Standard Bank PLC Personal and Business Banking unit (PBB) offers banking and other financial services to individuals and small-to-medium enterprises. PBB serves the increasing need among Africa’s small business and individual customers for banking products that can meet their shifting expectations and growing wealth.
For further information, go to www.standardbank.co.mw
