Your SlideShare is downloading. ×

Standard Chartered Bank Botswana Limited HY 2014 financial results

207

Published on

Standard Chartered Bank Botswana Limited listed on the Botswana Stock Exchange has released its half year results. Check out insights into this company in their presentation which appears below. …

Standard Chartered Bank Botswana Limited listed on the Botswana Stock Exchange has released its half year results. Check out insights into this company in their presentation which appears below.
Sign up to the www.theinvestormailinglist.com to receive earnings presentations of all listed companies in Africa by email

Published in: Investor Relations
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
207
On Slideshare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Total Income CONSOLIDATED BANK Total Cost Net bad debt H1 2014 H2 2013 H1 2013 600,0 500,0 400,0 300,0 200,0 100,0 Profit After Tax 0,0 45,0 40,0 (5,0) 5,0 10,0 15,0 20,0 25,0 30,0 35,0 COMMERCIAL CLIENTS Total Income Total Cost Net bad debt H1 2014 H2 2013 H1 2013 250,0 200,0 150,0 100,0 50,0 - (50,0) CORPORATE AND INSTITUTIONAL CLIENTS Total Income Total Cost Net bad debt H1 2014 H2 2013 H1 2013 CONSOLIDATED BANK TOTAL EQUITY vs CAPITAL ADEQUACY RATIO TOTAL EQUITY CAPITAL ADEQUACY RATIO PRUDENTIAL REQUIREMENT 10 000 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 - CONSOLIDATED BANK H1 2014 H2 2013 H1 2013 RETAIL CLIENTS Total Income Total Cost Net bad debt H1 2014 H2 2013 H1 2013 400,0 350,0 300,0 250,0 0,0 50,0 100,0 150,0 200,0 Standard Chartered Bank Botswana Limited Half Year Unaudited Financial Results for Period ended 30th June 2014 30-Jun-14 30-Jun-13 (P'000s) (P'000s) Statement of Profit and Loss and Other Comprehensive Income Interest Income 406,626 396,956 Interest expense (105,211) (87,539) Net interest income 301,415 309,417 Fee and commission income 141,619 84,295 Other income 102,678 89,264 Less: Commission expense (119) (282) Net fee income 244,178 173,277 Operating income 545,593 482,694 Operating expenses Staff expenses (113,502) (116,813) Other expenses (198,411) (174,208) Total operating expenses (311,913) (291,021) Profit before impairment losses 233,680 191,673 Net Impairment loss on financial assets (19,616) (14,837) Profit before income tax 214,064 176,836 Income tax expense (45,558) (41,378) Total comprehensive income and profit for the period 168,506 135,458 Number of ordinary shares in issue during the period at 100 thebe per share 298,350,611 298,350,611 Basic and diluted earnings per share (thebe) 56.48 45.40 Dividend per share (thebe) - declared in the period 51.26 53.63 Statement of Financial Position Assets Cash and balances with central bank 1,343,553 705,348 Loans and advances to banks 1,774,073 1,717,791 Loans and advances to customers 7,161,935 5,654,648 Investment Securities 1,283,328 1,219,738 Property and equipment 47,923 51,478 Intangible Assets 64,880 71,882 Other assets 171,545 137,128 Total assets 11,847,237 9,558,013 Liabilities Deposits from other banks 545,523 525,572 Deposits from other customers 9,522,528 7,656,665 Subordinated liabilities 297,260 297,260 Other liabilities 368,956 134,294 Total liabilities 10,734,267 8,613,791 Equity Stated capital 179,273 179,273 Reserves 933,697 764,949 Total equity 1,112,970 944,222 Total Liabilities and equity 11,847,237 9,558,013 Statement of Changes in Equity Share capital Revaluation Market Retained Dividend Capital Available for Total reserve reserve earnings reserve contribution sale reserve (P'000) (P'000) (P'000) (P'000) (P'000) (P'000) (P'000) (P'000) Group Balance at 01 January 2013 179,273 6,327 8,223 707,132 20,000 28,213 12,235 961,403 Total comprehensive income for the period Profit for the period - - - 135,463 - - - 135,463 Fair value adjustment: Available for sale securities - - - - - - 7,356 7,356 Transaction with owners, recorded directly in equity Dividend to equity holders - paid - - - (140,000) (20,000) - - (160,000) Dividend to equity holders - proposed - - - (20,000) 20,000 - - - Balance at 30 June 2013 179,273 6,327 8,223 682,595 20,000 28,213 19,591 944,222 Total comprehensive income for the period Profit for the period - - - 186,101 - - - 186,101 Fair value adjustment: Available for sale securities - - - - - - 10,676 10,676 Transaction with owners, recorded directly in equity Dividend to equity holders - paid - - - (40,000) (20,000) - - (60,000) Dividend to equity holders - proposed - - - - 20,000 - - 20,000 Balance at 31 December 2013 179,273 6,327 8,223 828,696 20,000 28,213 30,267 1,100,999 Total comprehensive income for the period Profit for the period - - - 168,506 - - - 168,506 Fair value adjustment: Available for sale securities - - - - - - (3,596) (3,596) Transaction with owners, recorded directly in equity Dividend to equity holders - paid - - - (132,939) (20,000) - - (152,939) Dividend to equity holders - proposed - - - - - - - - Balance at 30 June 2014 179,273 6,327 8,223 864,263 - 28,213 26,671 1,112,970 * The financial statements of SCB Insurance have been consolidated using uniform accounting policies for like transactions and other events in similar circumstances teement of Changes in EqquityyStat y 30-Jun-14 30-Jun-13 (P'000s) (P'000s) Statement of Cash Flows Cash flow from operating activities: Profit before taxation 214,064 176,836 Adjustments for: - Depreciation 6,311 4,259 - Amortisation on intangibles 5,988 5,969 - Net Impairment loss on loans and advances 19,616 14,837 245,979 201,901 Change in investment securities 90,285 437,428 Change in loans and advances to customers (893,267) (647,257) Change in other assets 17,904 43,005 Change in deposits from other banks 53,008 (1,690) Change in amounts due from non-bank customers 1,630,309 357,528 Change in other liabilities and provisions 96,552 (139,854) 1,240,770 251,061 Income tax paid (65,398) (59,004) Net cash generated from operating activities 1,175,372 192,057 Cash flow from investing activities Acquisition of property and equipment (10,751) (6,377) Net cash used in investing activities (10,751) (6,377) Cash flow from financing activities Repayment of senior and subordinated debt - (75,000) Dividends paid (152,939) (160,000) Net cash used in financing activities (152,939) (235,000) Net increase/(decrease) in cash and cash equivalents 1,011,682 (49,320) Cash and cash equivalents: Cash and cash equivalents at 1 January 2,105,943 2,472,459 Cash and cash equivalents at 30 June ** 3,117,625 2,423,139 ** Cash and cash equivalent are cash balances and balances held with Central Bank and other financial institutions with maturity of 0 - 3months. ttateemennt off CCassh Floowws SEGMENTAL REPORTING Statement of Comprehensive Income Retail Corp & Inst Commercial TOTAL 2014 Net Interest Income 218,652 99,608 (16,845) 301,415 Non Funded Income 134,126 92,106 17,946 244,178 Net Income Before Impairment 352,778 191,714 1,101 545,593 Impairment charge (18,137) (1,279 ) (200) (19,616 ) Net Interest Income after impairment 334,641 190,435 901 525,977 Operating expenditure (154,628) (118,260 ) (39,025) (311,913 ) Profit before taxation 180,013 72,175 (38,124) 214,064 Taxation (45,558 ) Profit after taxation 180,013 72,175 (38,124) 168,506 Statement of financial Position Investment Securities - 898,026 - 898,026 Loans and advances to customers 4,865,375 2,083,748 212,812 7,161,935 Other assets for reportable segments 89,205 3,687,969 10,102 3,787,276 Total assets for reportable segments 4,954,580 6,669,743 222,914 11,847,237 Deposits from non bank customers 2,761,046 5,139,347 1,622,136 9,522,529 Other liabilities for reportable segments 11,196 1,200,867 9,846 1,221,909 Total liabilities for reportable segments 2,772,242 6,340,214 1,631,982 10,744,438 SEGMENTAL REPORTING Statement of Comprehensive Income Retail Corp & Inst Commercial TOTAL 2013 Net Interest Income 216,925 80,090 12,402 309,417 Non Funded Income 75,384 75,787 22,106 173,277 Net Income Before Impairment 292,309 155,877 34,508 482,694 Impairment charge (14,559) 1,068 (1,346) (14,837 ) Net Interest Income after impairment 277,750 156,945 33,162 467,857 Operating expenditure (139,281) (124,978 ) (26,762) (291,021 ) Profit before taxation 138,469 31,967 6,400 176,836 Taxation (41,378 ) Profit after taxation 135,458 Statement of financial Position Investment Securities - 1,219,738 - 1,219,738 Loans and advances to customers 3,879,932 1,625,237 149,479 5,654,648 Other assets for reportable segments 79,758 2,601,470 2,399 2,683,627 Total assets for reportable segments 3,959,690 5,446,445 151,878 9,558,013 Deposits from non bank customers 2,432,486 3,682,896 1,541,283 7,656,665 Other liabilities for reportable segments 8,727 948,404 - 957,131 Total liabilities for reportable segments 2,441,213 4,631,300 1,541,283 8,613,796 The Directors have pleasure in presenting the unaudited financial results of Standard Chartered Bank Botswana Limited and subsidiary for the half year ended 30 June 2014. KEY FINANCIAL HIGHLIGHTS • Profit before tax increased 21% driven by excellent growth in loans and advances and deposits. • Total income is up 13% with strong growth across the business; Retail Client segment delivered 21% incremental revenue and Corporate and Institutional Client delivered 23%. • Operating expenses increased by 7% largely due to continued investment in staff and technical support. • Cost to income ratio has reduced by 3% from 57% as initiatives to contain costs continue. • Total impairment for both businesses is being well managed; the ratio of non-performing loans is 1.1% • The Statement of Financial Position continues to strengthen with loans to customers increasing by 27% to BWP7.1 billion and deposits from non - bank customers rising by 24% to BWP9.5 billion. • The bank continues to deliver strong shareholder value; earnings per share is up by 24% and return on average equity is up by 4.2%. • The Bank remains well capitalised and liquid. Business and Financial Position Review The Bank has delivered a good set of results for the first half of 2014. Income is 13% ahead of last year driven by strong performance from Retail Clients and increasing momentum from our Corporate and Institutional Clients segment, while trading profit shows 21% year on year growth. Despite the low interest rate environment increasing pressure on margins, the business delivered strong balance sheet growth, with loans and advances increasing by 27% and deposits also growing by a healthy 24%. On 1st April 2014, the Bank rolled out its new One Bank strategy with a refined organisational structure that concentrates on 2 main customer segment groups – Retail Clients and Corporate and Institutional Clients. This allows Standard Chartered to bring more focus to the specific client segments and serve their needs from end to end in a seamless manner. The Bank is already starting to realise some gains from this new development and is excited about the added value it will bring to our clients. Retail Clients continues to drive asset growth with good diversification of products. Personal loans are performing well, while other areas such as mortgage lending show a strong growth trajectory. The Corporate and Institutional Clients segment continues to leverage its global capabilities to bring superior solutions that meet our clients’ specific needs. In the first half of 2014 the bank concluded a number of significant trade transactions, again demonstrating the strength of our capabilities and balance sheet. Here for good As part of Standard Chartered’s community investment agenda and demonstration of Here for good, a number of projects were undertaken in the period under review. These included the building of a house building for a disadvantaged youth in Sefophe. Spearheaded by the Selebi Phikwe branch in partnership with the Broadhurst Choir, the project aimed to assist in having the hopes and dignity of the 23 year old who is orphaned and living with disability restored. In the month of April, Standard Chartered, declared Financial Literacy month. During this month, staff from across the country hosted financial literacy workshops at schools that have been adopted by individual units, branches and departments of the Bank. This was done to share skills and expertise so as to educate and empower the youth in good financial management, and also to encourage employee volunteering. As a Bank, we view Employee Volunteering as central to the very essence of what we stand for. Volunteering our time and skills helps us to be strong ambassadors for the Bank and exhibits the true spirit of our brand promise – Here for good. Bojosi Otlhogile Moatlhodi K. Lekaukau Chairman Chief Executive Officer GABORONE 31 July 2014 0.0% 5.0% 10.015 15.0% 20.0% 25.0% 850 900 950 1,000 1,050 1,100 1,150 H1 2013 H2 2013 H1 2014 Retail Loans & Advances CIC Loans & Advances Commercial Loans & Advances Total Loans & Advances Retail Deposits CIC Deposits Commercial Deposits Total Deposits

×