StanChart Transition To Digital Bank Yields Results

  • Profit after tax up 235% to P202m
  • Return on tangible equity up 16%


Standard Chartered Bank Botswana Limited says its transition to becoming a truly digital bank delivered yet another strong financial year by 31st December 2022 despite the uncertainty characterised by both local and global operating environments.

The Botswana Stock Exchange-listed bank saw its profit after tax for the period under review increase by 235 percent to P202 million.

“Our growth focus, cost and capital efficiency have also lifted return on tangible equity (RoTE) to 16 percent, surpassing our group target of 10 percent,” the bank’s Chairperson Doreen Khama and Managing Director Mpho Masupe say in StanChart’s financials released recently.

Managing cost base

“The bank continued to build momentum by delivering strong income growth, maintaining discipline in managing its cost base ending with a notable increase in operating profit.”

Khama and Masupe say the double-digit net revenue growth of 22 percent year-on-year was supported by positive Corporate Commercial and Institutional Banking (CCIB) momentum and a favourable interest rate environment.

“Our core business areas continued to deliver strong performances, with CCIB registering 69 registering revenue growth on the back of strong underlying business momentum and positive progress made against our strategic pillars,” they state.

“Our Consumer, Private & Business Banking (CPBB) segment, grew revenue by 8 percent largely benefiting from the higher policy rates in 2022.”

Digital adoption

The two note that the bank’s digital business agenda remains critical to transform CPBB’s growth and that the transformation is gaining pace with digital adoption improving by 6 percent year-on-year to 76 percent.

“The business is also on a path to scale the personal segment through strategic partnerships following the launch of Agency banking in 2022,” Khama and Masupe say.

“Operating expenses reduced by 8 percent, reflecting operational efficiencies with cost-to income ratio improving from 89 percent to 67 percent year-on-year.

“Expense efficiency is core to enabling the bank to create positive operating leverage, whilst creating capacity to continue investing in strategic initiatives.

“Our credit quality remains strong, and we are well positioned to support economic growth despite continued economic uncertainty.”

Reach and relevance

Looking into the future, the two say StanChart will continue to invest in partnerships and innovation as these are instrumental to its business, enabling the bank to increase its reach and relevance to serve clients in a meaningful way.

“We are optimistic about 2023, largely based on the sound fundamentals that we have in place for sustainable business growth,” they state.

“Moreover, given the encouraging macroeconomic fundamentals and stable outlook, we are confident that these positive sentiments will translate into growth within the economy and thus giving us an opportunity to pursue business and deliver value to our shareholders.”