Stanbic Bank Zimbabwe achieved a historical cost profit of ZWG1,1 billion for the year ended 31 December 2024.
After adjusting for once-off technical accounting losses of ZWG 389 million incurred on its investment property portfolio at the beginning of the year, when the bank’s functional currency changed, and fair value gains of ZWG 51 million after an independent property valuation, the sustainable historical cost profit was ZWG 1,4 billion.
The Bank’s Chief Executive, Solomon Nyanhongo, attributed the strong performance to increased interest income on the one hand and unrealised gains on various currency positions that the Bank had taken on the other hand.
Net interest income increased by eight percent from ZWG 954 million in 2023 to ZWG 1,0 billion in 2024. Non-interest income amounted to ZWG 2,9 billion, giving a total income of ZWG 3,9 billion.
“The uplift in net interest income achieved during the period was largely driven by the increase in the Bank’s net lending book from ZWG 4,2 billion in December 2023 to ZWG 8,4 billion as new lending assets were written during the period, combined with the currency depreciation which was experienced in September 2024,” he said.
“The robust growth in the Bank’s lending book in local currency terms was partially offset by the downward revision in the minimum lending rates from as high as 130 percent in February 2024 to close the year at 35 percent,” Mr Nyanhongo said.
He said the Bank registered a growth of 119 percent in its customer deposit base, reinforced by growth in both foreign and local currency deposits as new customers were acquired, combined with the upward impact of currency depreciation on USD deposits when expressed in ZWG.
“The Bank’s total operating expenses of ZWG 1,6 billion increased by 21 percent from ZWG 1,3 billion in the comparative period underpinned by the impact of the eighty percent currency depreciation which happened in September 2024.
This resulted in the undesired increase in the local currency equivalents of the Bank’s foreign currency denominated expenses,” Mr Nyanhongo said.
The Bank’s corporate social investment initiatives focused on education, the environment, and health and sanitation, with particular emphasis on supporting public health institutions.
During the period being reported, Stanbic Bank donated autoclaves worth USD 80 000 to four key health facilities across Zimbabwe and entered into a USD 75 000 partnership with the Brain and Spine Clinic, which provides life-changing neurological procedures to less privileged individuals.
Autoclaves are highly specialised equipment used to sterilise medical equipment in order to minimise infections in hospital environments. Furthermore, in collaboration with Celebration Health, the Bank funded 50 hernia surgeries for underprivileged children under the age of five.
Mr Nyanhongo expressed his gratitude to all stakeholders for their contribution to the results.
“I would like to express my heartfelt appreciation to our esteemed customers and stakeholders for their unwavering support and commitment as we continue to seek growth in a difficult operating environment”, he said.
“My deepest appreciation goes to the Stanbic Bank staff and management for remaining steadfast throughout the year. I would like to thank the Blue Bankers for their perseverance, hard work and determination towards providing exceptional customer service and for achieving these commendable results.”
In his statement accompanying the financial results, Stanbic Bank Zimbabwe chairman, Muchakanakirwa Mkanganwi, said the Bank ended the year with a qualifying core capital of ZWG 4.0 billion, which is equivalent to USD 156 million, while the regulatory minimum is the local currency equivalent of USD 30 million.
A dividend of ZWG 339 million was paid during 2024 out of the profits achieved in 2023. An interim dividend of ZWG 516 million for 2024 was approved by the board of directors and paid in November 2024.
“In the outlook to December 2025, major downside risks are likely to include the sustainability of the electricity supply, tight liquidity situation in the market, climate risks (including delayed rainfall), heightened geo-political risks and sluggish mineral commodity price trends,” he said.
He was confident that the Bank would be able to navigate these risks in the outlook period.
