slide 1
slide 1
Image Slide 2
Image Slide 2

Stanbic continues to grow its balance sheet

Filed under: Business,Latest News |

Stanbic Bank Zambia balance sheet growth continued to outpace the banking sector’s average performance for 2018, reinforcing the bank’s commitment to funding economic growth.

In line with its status as the nation’s largest bank by asset size, Stanbic says it continues to be a leading funder of key growth sectors, including mining, agriculture and energy, to uplift the country’s social and economic development.

Stanbic is part of Africa’s largest banking group, Standard Bank Group, and through its corporate and investment banking division, funded more than US$252 million or around K2.3 billion of key debt and advisory-led transactions in the Zambian in 2018.

Transactions cut across a range sectors, with Stanbic Bank Zambia’s providing US$101 million of funding to the mining sector, US$67 million to the public sector, US$28 million to non-banking financial institutions, US$41 million to the telecommunications sector, and US$37.7 million to the real estate sector.

“Our involvement in these transactions went a long way in uplifting the general social and economic standards of the country and touched on job creation and job security for over 14,000 direct and indirect beneficiaries,” said Stanbic Bank Zambia Chief Executive Leina Gabaraane.

Gabaraane explained that the extent of the bank’s integration into the economic system is such that Stanbic’s performance is closely correlated with fluctuations in the economy.

“Use of proceeds from the funding we arranged or funded went towards expansion finance, mine life extension, equipment finance and several brand-new greenfield developments. Based on funds arranged and deployed to the mining and real estate sectors over the last five to ten years, Stanbic Bank Zambia ranks at the top of the country’s debt finance league tables,” he continued.

In addition to the knock-on effect of increased taxes for the government and our support of the key sectors of the economy, Stanbic plays a key role in supporting the small and medium enterprises (SMEs), sector, more so with the real estate transactions we backed, which will see the opening of over 60 new trading outlets once they are completed.

The bank is of the firm belief that companies, especially small and medium enterprises, are the engine of the country’s growth, and that ensuring simpler and more friendly regulations for such businesses to thrive is key to making Zambia an attractive investment destination.

Gabaraane said that despite mining being an important economic sector, efforts at diversifying the economy away from over-dependence on mining would manage the risk of cyclic metal prices, and Stanbic believed agriculture remained the top priority sector to drive Zambia’s growth.

He further said that an International Monetary Fund programme would help address sentiment and boost reserves, but that government measures to curb spending and boost their revenue mobilization was a positive thing.

“Interest rates remain elevated as a reflection of the higher perceived risk of the economy due to ratings downgrades, something an IMF programme would help avert. However, we are in a better place, with the copper price stable and the currency.

Power supply has also been stable and resulted in good copper output numbers, so, a lot is being done locally to address some issues that have been of concern in the economy from a fiscal stand point,” said Gabaraane.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.