Page 26 - Stanbic Bank IR 2024

24 LEADERSHIP INSIGHT | Chief Finance And Value Management Officer’s Report

Growth in customer deposits was also driven by PPB and CIB, Liquidity and Capital management
testament to the enhanced customer value propositions as well as The Bank remains alert to optimal utilisation of capital. In 2024
investments in technology, which have enabled transactability for the Bank remained well capitalised, closing the financial year with
our clients. We continue to maintain the trust of our clients and a Capital Adequacy Ratio (CAR) of 17.73%. In the same financial
remain focused on enhancing quality of relationship management. year, the Bank declared a total of P474 million in dividends to its
Data driven behavioral analytics have also enabled the Bank to parent Stanbic Africa Holdings Limited (SAHL).
study clients’ behavioral patterns and informed appropriate client
segmentation, resulting in more appropriate client solutions. The The Bank’s leadership, through its Assets and Liabilities
Bank continues to draw closer to clients for feedback and Committee (ALCO), is charged with the management of liquidity
co-creation in line with clients’ needs, per our commitment to risk. In the year just ended, the Bank’s loan to deposit ratio closed
solve for client and address real needs. at 74.2%, an increase from 69% in the prior year. The increase is
driven by growth in loans to customers given the supportive
customer deposit base. The Bank continues to respond to the
market’s cyclical liquidity movements and has been able to
continue operations throughout the year.

Income Statement

Total Operating income Credit Impairments
Total operating income continues to grow amidst market liquidity Our credit risk control environment remains robust supported by
volatility and a competitive landscape, posting 19.6% growth. This a healthier loan book as evidenced by a Credit loss ratio of 0.2%
growth is as a result of a 23.4% growth in Net interest Income as (2023:0.6%). Though all segments reflected reduced impairments
well as a 15.6% growth in Net fee and commission income driven impact, there have been pockets of notable risks across products
by customer growth especially in PPB. Balance sheet optimisation, and segments which were managed well through effective credit
as a core commitment to efficiency drive, led to a 20.4% decline in collections and rehabilitation strategies.
interest expense despite a 9.4% growth in deposits. Interest
income saw a 6.6% growth. Operating expenses
Costs reflect an 11.3% growth from 2023, however, showing an
Non-Interest Revenue grew by 11.4% with fees and commissions improved cost to income ratio (CTI) of 49.1% from 52.8% in 2023.
and trading revenue reflecting growth of 15.6% and 6.7% Cost growth is aligned to the Bank’s strategic focus areas around
respectively. Transactional volume driven fees had an uplift people, compliance costs, IT security and other technological
boosted by client acquisitions across segments, campaigns enhancements in support of business growth and improving client
around different product offerings, as well as efficiencies brought experience across our product offerings.
about by technology infrastructure enhancements to improve
accessibility and transactability.
Total Income vs Operating Costs
2 000 000
1 800 000 70.0%
1 600 000 60.0%
1 400 000
50.0%
1 200 000
1 000 000 40.0%
BWP’000 800 000 30.0%

600 000
20.0%
400 000
10.0%
200 000
- 0.00%
2020 2021 2022 2023 2024
Total Net Income Total Operating Expenses Cost to Income (RH)

Outlook

2025 outlook remains positive with government aspirations to invest heavily on social economics
tackling low wages, youth unemployment and increased subsidies on utilities amongst other
things. These correlate well with our purpose and vision centred around growing Botswana by
optimising opportunities by excellent execution and exceptional client experience to drive
sustainable growth and value. However, uncertainties remain as no significant government policy
changes have been made to date. Changes to date include change of SDR/ZAR weights to an
equal contribution and the lifting of vegetables import ban. The Bank is, however, optimistic that
it will be able to traverse the challenges in the market owing to the improvements and
investments made in the last few years, which will enable it to continue servicing clients
effectively. Realeboga Phoi
As we look forward, we remain committed to our Purpose and promise: Botswana is our home, Chief Finance and Value
we drive her growth. Management Officer