There was no increase in operating expenses, and the new group’s branch network was duplicated in only four towns, where they have since been consolidated into one branch. Customers are now able to use branches across the country, which especially benefits clients of SBL, which had the smaller network of the two entities. Management efficiencies were gained by eliminating IT systems overlaps, accounting systems, boards of directors and executive committees.
The merger freed up surplus capital with the resultant payment of a special dividend to shareholders, which should lead to RoE growth to 45% this year from 35.9% in 2006. The group’s foreign exchange processing was centralised with its Johannesburg headquarters and this brought about a major increase in turnover.
Four new loan products were introduced in the retail market under the bank’s Extended Retail Lending Module, which has resulted in faster loan application turnaround and an uptake of personal loans by clients. Several new banking products were designed, including internet banking and packaged accounts to the retail market. On a pro forma bottom line level, Tier 1 capital rose 4.9% in the year, assets by 31% and net profits by 16.8%.
“We at Standard Lesotho Bank are thrilled to have won the Bank of the Year 2007 award for Lesotho,” says managing director Colin Addis. “This is the fourth consecutive year that we have won this award. As at September 2007, the bank is on target to deliver to shareholders the promised profit after tax by the year end. For 2008, we have budgeted for a further profit growth of just over 30%. These great results are mainly due to the support of our customers, staff and other stakeholders.”
