During the AGM last week
* At our recent AGM in Blantyre, shareholders expressed satisfaction in our net profit record in the three years
* Thanks to their support, we remain focused on creating long-term value for our shareholders, customers, and the broader economy
Maravi Express
The share price of Standard Bank Plc on Monday soared to MK4,400 propelling the company’s market capitalisation to surpass MK1 trillion mark.
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A trading report at the Malawi Stock Exchange (MSE) shows Standard Bank becoming the second-highest capital gainer by closing slightly above MK1 trillion after National Bank of Malawi MK1.3 trillion.
The MSE trading report quotes the bank’s share price increasing from K3,950.34 to K4,400 per share or 11% to move the counter’s capital gain to MK1.032 trillion.
Reacting to the development, Chief Executive Phillip Madinga said it reflects the confidence that investors have in the bank in delivering superior profit margins.
“This growth is a testament to our commitment to delivering exceptional financial performance, innovative banking solutions, and sustainable growth,” he said. “At our recent AGM in Blantyre, shareholders expressed satisfaction in our net profit record in the three years.
“Thanks to their support, we remain focused on creating long-term value for our shareholders, customers, and the broader economy.
“Our strategic priorities, including digital transformation, customer-centricity, cost and risk management, are yielding positive results,” Madinga said.
An independent market analyst, Dr Saidi Jackson predicted Standard Bank’s share price to continue rising as investors exercise options in hedging capital against market volatilities.
“It’s only logical for investors to back high performing companies or stocks, and with a good track record,” said Jackson, who is also a business management lecturer at UNICAF University Lilongwe campus.
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“Financial stocks like Standard Bank are seen as relatively safer in this market because of their impeccable risk management profile, and prudence.”
The bank’s net profit for the financial year ended December 31, 2023 was K52.5 billion of which MK25.4 billion was approved by shareholders last week as total final dividend.
At the AGM, The shareholders also applauded the Malawi Stock Exchange-listed bank’s management and staff — led by Chief Executive Phillip Madinga— for navigating a difficult economic environment to register a net profit of K52.5 billion — representing a 34% increase over 2022.
Speaking during the AGM, secretary general of Minority Shareholders Association of Listed Companies, Frank Harawa said the equity owners were happy with the recent results, which reflected success in the pursuit of Standard Bank’s operating strategy.
“We’re grateful for the impressive results registered so far,” he said. “They show tremendous progress and hard work is being put in. We also hope that as we review shareholders and executive management pay, employee’s remuneration is also a consideration.”
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On the 2023 performance, Board chairperson, Chris Kapanga said despite operating in a difficult macro-economic environment, the bank demonstrated resilience.
“The group continued to operate in a challenging environment due to foreign currency demand and supply imbalances and high inflation rate,” said Kapanga in a joint statement with Chief Executive Madinga.
He said the bank’s total revenue grew by 57%, while loans and advances also increased by 25%. He added that net interest income grew by 60%, while non-interest revenue grew by 51%.
The bank also registered an increase in trading volumes which benefitted its net fees and commissions.
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