Standard Bank impresses as results show prudent management
BLANTYRE, Malawi -- Standard Bank Plc, listed on the Malawi Stock Exchange, will outline its 2023 performance to shareholders and other stakeholders Monday after posting a 34% increase in net profit to K52.5 billion, which one analyst described as "impressive", writes Frank Phiri.
Reacting to the results, independent economist Thomson Nelson Kumwenda of Lilongwe said they reflect impressive cost efficiencies and Standard Bank's "solid understanding and application" of risk management standards for government securities.
"With expected credit losses heightened by 112% year-on-year, they must have been prudent enough to have widened coverage on lending to government and the probability of default and loss," Kumwenda said.
He noted Standard Bank accounted for the International Monetary Fund and World Bank classifying Malawi's debt as unsustainable in recent years and a sovereign risk.
"Any internationally present bank will factor the debt analysis into probability of default and loss given default assumptions and apply appropriate discounts on the government portfolio exposure," Kumwenda said.
Standard Bank said net interest revenue grew 57% "driven by growth in both net interest income and non-interest revenue," according to the report co-signed by Madinga, board chairman Chris Kapanga and other directors.