The turnaround in the bank’s fortunes was driven by a more effective investment of funds, aggressive dealing in foreign currency arbitrage deals and the establishment of effective cost-control measures. As a result, return on equity was boosted to almost 24% in 2007, up from a figure of – 16% in 2006. The firm’s cost-to-income ratio was slashed by 15 percentage points to 60%, from 75% the previous year. Assets grew by 70% and Tier 1 capital was strengthened by 4%.
Stanbic Bank Tanzania also increased its range of products available to customers with the introduction of internet banking, home loans and ATMs. The bank also launched a centralised customer care centre, which it hopes will simplify the enquiries and complaints process for its corporate and business banking customers.
After two years of dire financial results, 2007 marked a seed change in the bank’s fortunes. One particularly profitable move was the bank’s investment in government securities, which yielded a generous 15% to 21% over the year. Stanbic Bank Tanzania’s turnaround more than qualifies it for Bank of the Year in Tanzania.
