Standard Bank performs despite tough 2003

STANDARD Bank Namibia has announced its annual results which show that the bank registered positive results for 2003 compared to the previous year, upping its total assets to N$6,7 billion from N$5,6 billion in 2002.

However, the bank’s managing director Theo Mberirua described 2003 as a good performance despite tough circumstances. The bank’s subsidiary companies failed to perform with interest in group companies decreasing to N$237 million from N$308 million in 2002.Commenting on this in the annual report released recently in Windhoek, Mberirua said despite this and other pressures that included a rapid decline in interest rates and profits from funds remaining flat, “the bank was still able to record a solid performance”.The bank’s business growth can be attributed to more deposits, current accounts and by the bank providing more loans for housing to customers.”Loans and advances grew by a most acceptable 16,6 per cent, driven mainly by home loans, vehicle asset finance and leasing through Stannic and structured loans in both the retail and business markets …Revenue from this source grew by a very attractive 14,6 per cent year-on-year,” said Mberirua.Standard Bank chairman Dr Leake Hangala gave an overview of the national economy saying it was resilient under last year’s global economic challenges, hence economic growth of 2003 surpassed the three per cent mark.Dr Hangala noted with concern local developments, including government’s recently announced land reform exercise, that he feels might affect economic growth for this year, which is expected to rise above four per cent.”Although this is an election year, government’s commitment to fiscal discipline suggests that the contribution of government services to GDP growth will be muted.”In general, a more favourable international economic situation, and monetary easing in recent quarters, should assist growth.However, continued regional issues, and domestic concerns about land expropriation, may affect sentiment,” said Dr Hangala.He, however, added that the bank will remain focussed on black economic empowerment, among other things.Meanwhile, Mberirua expects the bank to expand its business in all sections during 2004.”The bank is embarking on an extensive programme to change the way we provide retail banking services which will include the implementation of a new system delivery platform known as Branch Delivery System, ” he said.The bank’s subsidiary companies failed to perform with interest in group companies decreasing to N$237 million from N$308 million in 2002.Commenting on this in the annual report released recently in Windhoek, Mberirua said despite this and other pressures that included a rapid decline in interest rates and profits from funds remaining flat, “the bank was still able to record a solid performance”.The bank’s business growth can be attributed to more deposits, current accounts and by the bank providing more loans for housing to customers.”Loans and advances grew by a most acceptable 16,6 per cent, driven mainly by home loans, vehicle asset finance and leasing through Stannic and structured loans in both the retail and business markets …Revenue from this source grew by a very attractive 14,6 per cent year-on-year,” said Mberirua.Standard Bank chairman Dr Leake Hangala gave an overview of the national economy saying it was resilient under last year’s global economic challenges, hence economic growth of 2003 surpassed the three per cent mark.Dr Hangala noted with concern local developments, including government’s recently announced land reform exercise, that he feels might affect economic growth for this year, which is expected to rise above four per cent.”Although this is an election year, government’s commitment to fiscal discipline suggests that the contribution of government services to GDP growth will be muted.”In general, a more favourable international economic situation, and monetary easing in recent quarters, should assist growth.However, continued regional issues, and domestic concerns about land expropriation, may affect sentiment,” said Dr Hangala.He, however, added that the bank will remain focussed on black economic empowerment, among other things.Meanwhile, Mberirua expects the bank to expand its business in all sections during 2004.”The bank is embarking on an extensive programme to change the way we provide retail banking services which will include the implementation of a new system delivery platform known as Branch Delivery System, ” he said.