It also worked hard to develop Malawi’s agricultural sector by providing finance to the nation’s farmers to buy fertiliser as part of a government subsidy initiative to ensure food security. Elsewhere, it set up a specialised bank unit to service small and medium-sized enterprises as well as introducing a home loan product to the Malawi market.
The bank’s investment banking business also grew in 2007. It won the mandate to become lead adviser for the biggest ever rights issue undertaken in Malawi – the Mk2bn ($14m) capital raising for building parts supplier Press Corporation Limited. It was also appointed lead arranger for PTA Bank’s Mk2bn 2007 bond issue.
As a result, the bank turned in solid performances across its business areas. Its return on equity grew from 29% in 2006 to 37% in 2007, while assets grew by 34% and Tier 1 capital by 50%. The bank’s cost-to-income ratio fell by almost 10% in 2007 to 68% and non-performing loans were reduced from 1.3% of the loan book to 1%. Standard Bank Malawi not only produced impressive results in 2007 but also took an active part in developing Malawi’s fledgling economy – particularly in the agricultural sector.
“We are committed to making a real difference in our customers’ lives. We will continue to provide excellent services to our customers as well as striving to remain relevant to the Malawi community, thereby contributing to national development so that we remain the best bank in the years to come,” says Charles Mudiwa, managing director of Standard Bank Malawi.
