By LusakaTimes
Standard Chartered Bank Zambia has said its on course to record its highest net profit growth in the 104 years of its existence in Zambia before the end of the year.
Speaking at a media briefing this morning, Standard Chartered Bank managing director Mizinga Melu said the bank’s net profit this year had risen to 116 percent.
“Our net profit has grown 116% translating to K93.2 billion, our balance sheet has grown 18 % which is K3,398 billion while our deposits have grown 10 % culminating into K2,664 billion.
She said the bank managed to record the increased profit despite the global economic recession that had affected Zambia and the rest of the continent.
And Ms. Melu announced a stable Kwacha projection at K4,470 level,with pivotal support.
Standard Chartered Bank’s medium to long term focus is that the Kwacha will extend its gain further with pivotal support at K4,470. The major factors to support the local currency include:
-buoyant Copper prices on the London Metal Exchange
-trade surplus in consecutive months so far this year
-favourable domestic economic environment
-low inflation rates
-capital inflows from offshore clients looking to buy government securities
Good that the bank is making profits. However, am dissappointed with Standard Chartered management behaviour towards the plight of former workers who won a court case many years ago but despite the huge profits the desperate retirees are not being paid what is rightfully theres.
Balance sheet growth 18% OK
Deposit growth 10% OK
Net profit growth 116% ????
This is an obscene profit by any standards. You guys are reaping too much money out of your customers.
Why don’t you increase the savings rate too, or better still listen to BoZ and reduce the lending rate so that more Zambians can benefit through more business growth, more employment etc etc. All these measures combined would still leave you with a respectable 80% net profit. This is where windfall tax should apply, why have we overlooked this business area and instead focussed on Mines alone? BoZ must give them a choice, reduce lending rates or face windfall tax @ 35%. They will still remain with 80% which is higher than anywhere else, so they won’t quit Zambia.
Maybe we should have a windfall tax on the banking sector too. And reduce it percentage by percentage when they lower their lending rates.
Benangu bakamba ati Zambia is a failed state…….
Windfall tax will discourage innovation and product differentiation. There are 19 commercial banks in Zambia (last I checked) so if you’re not happy with their ‘high’ fees, feel free to bank with the local banks. Stanchart targets middle class and above and hence their product offering and subsequent fees. Let’s simply give credit where it’s due. As for the PF and their vuvuzela, I doubt a multi national bank like SCB would have delivered such numbers if we were indeed a “failed state”.