Standard Bank has witnessed a drop of 37 percent in its after-tax profits for the year ended December 31, 2017.
The bank has since attributed to the drop to credit losses as result of growth of non-performing loans, especially in the agriculture sector.
In statement issued by the bank and signed by its Chairperson, Rex Harawa, the institution says the drop will also reflect on the returns for its shareholders.
The bank which is listed on Malawi Stock Exchange, posted a profit of K12.162 billion which is K7.263 billion less of the K19.425 billion realized in 2016.
“Credit impairments were significantly above prior year due to growth of the non-performing loan book, especially in the agriculture sector. The group will focus on robust credit risk management to avert future non-performing loans and emphasis on recoveries of written off loans,” the bank said in a statement.
The bank’s earnings per share for the year have decreased from K83 per share in 2016 to K52 per share in 2017.
Meanwhile, Harawa said the local economy is still subjected to risks from weather-related shocks and power challenges despite a stable macroeconomic environment being anticipated for the most part of 2018.
“As a group, we remain committed to ensuring customer satisfaction. In order to improve customer satisfaction and improve efficiencies, the group implemented a new core banking system during the year.
“With the new system in place, we will drive digitization in order to improve customer experience. We will also focus on cost rationalization, prudent management of risk and liquidity, diversify balance sheet and maintain a healthy capital position,” Harawa said.