Standard Bank Malawi has announced an after-tax profit of K24.8 billion for the year 2021, a four percent increase over the K23.7 billion profit made in 2020.
Results released by the bank indicate that total revenues increased by 31 percent and this was driven by growth in net interest income and non-interest revenue.
The bank saw a 25 percent growth in net interest income on account of an increase in loans and advances to customers as well as financial investments, both of which grew by 25 percent.
During the year, there was also a 20 percent increase in operating costs driven by increase in prices of goods and services as well as investments in information technology.
“Regardless of the performance, the group continued to operate in a challenging environment as demand for foreign currency continued to outweigh supply. This resulted in the kwacha depreciating.
“Covid-19 also continued to affect business which in turn impacted credit growth and transactability,” Standard Bank Malawi plc chief executive Phillip Madinga, board chairperson Ngeyi Kanyongolo, chief financial officer Temwa Simwaka and director Andrew Chioko said in a statement.
The statement added that credit impairments were significantly up compared to the previous financial year due to growth of customer loans and advances as well as the impact of Covid-19 on the loan book which resulted in additional credit impairments.
The bank, however, said will continue its efforts to recover previously written off loans.
