Standard Chartered Bank nets 29pc profit increase

Dar es Salaam. The year 2019 was good for Standard Chartered Bank Tanzania Limited as the lender’s pre-tax profit rose by a cool 29 percent.

The bank’s financial statements show that net profit reached Sh47.14 billion in 2019 from Sh36.44 billion in 2018.

This brought the bank’s net profit for 2019 to Sh34 billion from the Sh20 billion that was registered in 2018.

The rise in profit was primarily fuelled by a sound performance in the bank’s recovery of impaired loans and Advances for the year as well as a moderate rise in fees and commissions.

“Our individual and corporate units had a positive outcome of their recovery strategy in 2019, which resulted into the good results,” the bank’s chief financial officer, Mr Rayson Foya, said.

In 2019, he said, the business units worked closely with clients and agreed on win-win repayment plans which ensured that clients’ businesses were not impacted.

“We are happy to note that this recovery strategy has worked well for both parties - and we will continue to implement it in 2020,” Mr Foya said.

With improved recovery, Standard Chartered Bank Tanzania also recorded an 11 per cent increase in Loans, Advances and Overdrafts.

Its loans, advances and overdrafts portfolio grew from Sh640.12 billion at the end of 2018 to Sh712.52 billion on December 31, 2019.

“We are happy with the results that we recorded for 2019. This set of results is a reflection of the strength of our business strategy, driven by our dedicated employees as well as an execution of our commitment to further supporting the growth of our country,” said the bank’s managing director, Mr Sanjay Rughani.

He said the growth in loans, advances and overdrafts was mainly from its conscious efforts of increased collaboration with loyal clients in all segments as well as expanded platforms that provided more convenient banking to clients.

Commenting on the outcomes of the Standard Chartered’s Full Digital Bank on Mobile strategy, Mr Rughani, revealed that 2019 was the year in which the Bank grew exponentially in terms of adding new clients.