STANBIC Bank Zimbabwe has deferred interest and capital payments on loans and restructured some facilities to cushion clients from the adverse effects of the Covid-19 on businesses.
Restrictions to contain the spread of Covid-19 global pandemic, including lockdowns resulted, have caused major economic shocks on businesses and amplified risk of uncertainty.
As such, Stanbic said it was in the process of assessing the impact of Covid-19 on the quality of its loan book given the overwhelming negative effects of the pandemic on firms.
The year 2021 kicked off on a low as the economy suffered from the second wave of the lethal pandemic, which resulted in a steep rise in the number of infections and deaths.
The Government responded by instituting a series of strict lockdowns, which entailed reduced levels of business activity and banning of activities like mass gatherings and intercity travel.
Stanbic’s net lending book increased to $12,2 billion in the first six months to June 2021 from $10,7 billion in December 2020, as demand for local currency funding persisted.
In an update for the half year period to June 2021, Stanbic chief executive Mr Solomon Nyanhongo said the bank was considering being lenient to its clientele who had accessed loans.
"In an effort to alleviate the impact of Covid-19 on our customers’ businesses, some facilities had been restructured during the period through the deferment of both interest and capital to customers whose operations had been disrupted by the deadly virus.
"As at the end of June 2021, the bank had raised sufficient credit impairments after assessing the impact of the pandemic on the business operations of its counterparties," Mr Nyanhongo said.
Stanbic Bank registered a $1,2 billion profit after tax in the first six months to 30 June 2021, a modest decrease from $1,3 billion in the prior comparable period.
Net interest income for the period under review grew by 218 percent to $2,6 billion a 218 percent from $803 million in the prior period driven by strong growth in interest earning assets, as new lending assets were written.The bank’s fee and commission income for the period grew by 167 percent to close at $2,7 billion from $1 billion in 2020 largely driven by improved volumes of transactions processed on its service channels as most businesses went operational.The bank agreed with projections by the International Monetary Fund’s (IMF) and World Bank’s that the economy would grow by 6 percent and 3,9 percent, respectively on improved economic […]