The country’s gross national product grew just 2.3% in 2007, well behind the African average of about 6%.
Despite this, Standard Bank Swaziland grew its net profits by 21.2% on the back of a rigorous cost-cutting initiative combined with an aggressive cross-selling strategy. The bank initiated cost containment programmes and put in place contingency plans to suspend certain spending during the year if forecasted growth in income was not being achieved. As a result of these actions, the bank has reduced its cost-to-income ratio from almost 60% in 2005, to just over 50% today.
On the sales side, Standard Bank Swaziland worked hard to extract more income from its customers by cross-selling other products such as home and car loans, insurance, investments, credit cards and savings accounts. It also boosted its return on equity in 2007 to 48.6%, up from 46% in 2006. Its asset base grew by 11.2% and Tier 1 capital was strengthened by 19.9%.
Standard Bank Swaziland is a deserved winner of this year’s award for maintaining its profits in a tough economic environment and working hard to inculcate a banking and savings culture in one of the world’s most backward economies.
Standard Bank Swaziland managing director Tineyi Emmanuel Mawocha puts the bank’s success down to hardworking management and staff. “Our plans are to continue innovating and finding solutions for our customers’ requirements. This will involve embracing technology as well as further training our employees to be better equipped to serving our customers in a dynamic environment,” he says.
