Standard Chartered Bank Zambia has recorded a massive 25% drop in profits following a corresponding decrease in top line revenue. A drop in top line revenue is perhaps the most worrying trend as it indicates loss of business.
A source at the bank who spoke to the Zambian Business Times – ZBT on condition of anonymity stated that some bad decisions made by the previous CEO who has since been replaced and transferred to another country within the Banking group is responsible for the current bad results.
According to the trading statements made available to the Zambian Business Times – ZBT, the earnings per share for the six-month period ended 30 June 2022 is K0.10 compared to earnings per share of K0.13 for the six-month period ended 30 June 2021.
A further check on the half year trading results revealed that non-funded income [mostly bank fees and charges] also declined due to a drop in transaction volumes, an indicator that the new CEO Sonny Zulu has a mountain to climb.
Banks main business is to mobilize deposits and make loans, but Stanchart posted a decline in both these key parameters, loans and advances reduced by 13% year on year while customer deposits declined by 12% year on year. More analysis to follow.
