Stanbic Bank Reports 4% Revenue Drop in 2015

But  assures public of continued commitment to reliable customer service….

Stanbic Bank Tanzania Board Chairman Khatibu Senkoro (centre) speaks during a board meeting at the bank’s Head Office in Dar es Salaam. He is flanked by Stanbic’s Managing Director Bashir Awale (right) and the bank’s Head of Legal Services Sioi Solomon (left). (Photo Credit: Issa Michuzi Blog).

Stanbic Bank Tanzania Board Chairman Khatibu Senkoro (centre) speaks during a board meeting at the bank’s Head Office in Dar es Salaam. He is flanked by Stanbic’s Managing Director Bashir Awale (right) and the bank’s Head of Legal Services Sioi Solomon (left). (Photo Credit: Issa Michuzi Blog).

 

By Jaston Binala.

 

Stanbic Bank Tanzania Limited has reported it was unprofitable between 2014 and 2015.  The bank’s net income after tax dropped by 4% during the period, while its returns on shareholders’ funds dropped by 2%.

The bank’s total liabilities increased from Tsh. 130.106 billion in 2014 to Tsh. 1.097 trillion in 2015, the banks mosr recent financial statements show.

The audited financial statements released in March this year covering the  two years show the bank also sustained increased operational expenses from Tsh.72.911 billion in 2014 to 84.978 billion in 2015.

Efforts by telephone and e-mail to reach the banks Executive Director for comment were not successful. The Financial statements are signed by the bank Chairman, Mr. Hatibu Senkoro and Director and Chief Executive Officer Kenrick Cockerill.

Stanbic Bank  Tanzania  Limited  provides  various banking  products  and  services in  Tanzania. Its personal  and  business  banking  products  and services  include mortgage  lending,   such  as resident ial  accommodation  loans  to individual customers; and  instalment sale and  finance  leases consisting of instalment   finance for vehicles  in the consumer market and finance of  vehicles  and equipment   in  the  business market.

stanbicbank

The  company’s personal  and  business  banking  products  also comprise  transactional  and  lending  products, including  transactions  in  products  associated with  the various  points  of   contact   channels such as ATMs, Internet banking  and  bank branches.   It also provides corporate  and  investment   banking.

Asset growth on the performance indicators  announce an increase from 21.56% to 28.32% during the period, but  the earning assets to total assets ratio dropped from 85.11% down to 82.99%. The shareholders’ funds to  total assets ratio dropped from 13.41% in 2014 to 11.90% in 2015.

The bank is meanwhile the subject of  a number of controversial financial dealings, including alleged facilitation of money laundering. In October last year, the Bank of Tanzania imposed a penalty of  Tsh.106 million to Stanbic Bank Tanzania Limited  for failing to observe Regulation 6 of Bank of Tanzania (Credit Reference Databank) Regulations 2012.

In a recent statement,  however, the bank defended itself saying it was aware of the Parliamentary report regarding IPTL and the Tegeta Escrow account and the associated suggestion that the Bank might have permitted money laundering through banking an affected party but added it that was “satisfied that Stanbic Bank Tanzania has complied with all of its anti-money laundering obligations and co-operated fully with the authorities in their investigations.”

“We wish to reassure our customers that Stanbic Bank Tanzania has stringent and robust processes in place to comply with the fiduciary and regulatory laws as set by the government of  Tanzania. We remain committed to serving our customers,” the bank said in a published statement.