Standard Chartered Bank net profit rose almost three times in the fourth quarter of last year, with interest income boosting the bank’s overall earnings.
Net income jumped to 9.8bn/- last year from 3.3bn/- in the fourth quarter of 2010, an increase of almost 200 per cent, the bank said in its financial statement issued yesterday, attributing the profit rise to mainly interest income from lending business.
Interest earnings grew to 13.7bn/- from 8.8bn/-, with 627bn/- dished out as loans. Total deposits however grew by 7.6 per cent to over 1trn/-. The other part of the profit came from non interest income that contributed 12.9bn/- against the 6.7bn/- in the corresponding period in 2010.
The main contributor of noninterest income was earning from foreign exchange dealings that went up to 8.4bn/- from 4.8bn/- as well as fees and commissions that generated 5.3bn/- in revenue compared to the previous year’s 4.03bn/-.
Standard Chartered saw its assets grow by 1.4 per cent to 1.24trn/- by last December. Net profit margin boosted the basic earnings per share three times to 1,741/- from 584/- of the same period in 2010. The bank maintained the same number of employees and branches at 337 and seven, respectively.
The bank has existed in Tanzania since 1917 when it first opened its doors. The Bank was nationalised in 1967, but re-opened on September, 1992. Today, the bank, which is among the top five performers, has seven branches of which four are in Dar es Salaam, and one each in Moshi, Arusha and Mwanza. The bank areas of focus are agriculture, trading and manufacturing sectors. It also supports Small and Medium Enterprises.
By ABDUEL ELINAZA, Tanzania Daily News