Stanbic records impressive growth

Stanbic Bank Tanzania has reported a good financial performance for the first quarter of 2013 in terms of total income earned and cost management.

According to a statement issued, the total income of the bank grew by 43 per cent as compared to same period last year. 

This was mainly caused by the increase in the net interest income by 15 per cent, despite the tight liquidity conditions in the market and the increased cost of funding that the banking industry is currently facing.

Non-interest income including fees and commission as well as trading revenue grew by 84 per cent, mainly due to increased investment banking transactions which led to fees and commission alone growing by 194 per cent as compared to the previous year, the statement said.

Operating expenses grew by 13 per cent mainly due to high inflation in the market and also increase in number of branches as compared to previous year. 

“Management has put in place cost containment measures to ensure operation costs are well managed and kept within approved levels and any growth should be explained by growth in business and level of inflation,” it reads.

The bank said it acknowledged stress in the unsecured lending market for personal and business banking which has largely created an increase in the levels of non-performing loans from 15bn/- in previous quarter to 30.9bn/- this quarter, thus an increase in credit impairments which grew to 18.6bn/- as compared to 1.9bn/- reported in the same quarter the previous year.
Source: The Daily News, reported from Dar es Salaam
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