Standard Chartered Bank Zambia Plc. (LUSE: SCZ) reported a 3% year-on-year increase in net profit to K244 million in financial year (FY) 2014. Earnings per Share (EPS) came in at K0.146 (K0.142 in 2013):
The increase in net profits was driven by:
- 15% growth in net interest income
- 19% growth in net commission and fee income
- 12% growth in income from trading and financial instruments
However, their bottom-line was negatively impacted by a year-on-year rise in personnel and other expenses of 29% and 42%, respectively. A significant portion of this was driven by a K27 million provision for staff separation costs.
Stanchart experienced revenue growth of 15% year-on-year to K811 million in FY 2014:
Growth in the revenue was due to solid performance from the Corporate and Institutional (up 25%), Retail (up 29%) and Commercial (6.6%) client segments. Loans and advances to customers increased by 13% year-on-year to K3.1 billion.
Stanchart’s stock price closed the year at K2.0, up 3.6% in 2014.
A final dividend of K0.06 per share was recommended for FY 2014.
In their outlook for 2015, the company said:
Zambia remains an attractive market with very good growth potential. Following a very successful and peaceful Presidential by-election, the opportunity to continue on the path of economic transformation presents itself with greater impetus. Whilst we project some challenges in the near-term, these should abate as the Government addresses the key macro-economic risks of inflation, fiscal balance and acute currency depreciation. Progress on issues such as the mining sector royalties and Value Added Tax (VAT) refunds, well-structured infrastructure financing, and managing wage demands, will be of great importance.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *