... NEGOTIATIONS REACH DEADLOCK - BANK’S MANAGEMENT

MBABANE – Sibusile Sigwane, the Head of Brand and Marketing at Standard Bank, said the financial institution acknowledged the ongoing wage negotiations between management and staff, led by their union, the Swaziland Union of Financial Institutions and Allied Workers (SUFIAW).

She said efforts towards a negotiated settlement at this stage had regrettably reached a deadlock. At this stage, the head of brand and marketing said mediated negotiations with the support of other key stakeholders were ongoing. Sigwane mentioned that the bank remained committed to follow the necessary dispute resolution processes, at the same time, acknowledging and respecting the prerogative of staff to exercise their rights. She said the management of the financial institutions wished to categorically state that all services at the bank would continue as normal.  “We, therefore, appeal to our customers and the public at large not to panic as there will be no disruptions to services,” Sigwane said.

assistance

“We further would like to encourage our customers to also make use of our digital channels and reach out to their relationship managers or contact centre via 2517 5300 for remote assistance.” The Times of Eswatini reported on March 31, 2023 that Standard Bank achieved a profit (after tax) of E203 million for the 2022 financial year, which was 14 per cent above the previous profit of E178 million. Mvuselelo Fakudze, the Chief Executive (CE), was quoted to have said that the financials demonstrated the bank’s resilience in the face of an uncertain trading environment. He said the bank reached a landmark by being the first financial institution to generate total revenue of E1 billion. Fakudze said non-interest revenue grew by three per cent. He said this was driven by an increase in transactional volumes, as the economy continued to recover, following significant restrictions in the past two years due to the COVID-19 pandemic.

The CEO said costs incurred stood at E626 million. This represented a 15 per cent growth (year-on-year) that was attributable to inflation pressures faced in the year under review, as well as increased investment in information technology. He said they expanded their footprint through various digital branches to ensure a stable network for their customers. “Significant investments were also made on our UNAYO platform as we drive financial inclusion initiatives,” he added. Fakudze also mentioned that net interest income grew by 24 per cent (year-on-year). It was driven by an increase in average loan balances in the year and the increasing interest rate cycle environment experienced in 2022.

Loans

The CEO explained that impairments increased to E103 million, a 15 per cent increase from the previous year, as a few of their clients experienced challenges in the year under review, with some though still recovering from the effects of COVID-19. Loans and advances to customers closed at E4.9 billion, which is a four per cent growth from the previous year. Deposits from customers during the year closed at E7.3 billion, which was five per cent below those recorded in the previous year. When asked about significant factors impacting on the results, the CEO said the economic conditions prevailing in the year, coupled with an increase in interest rates and inflation, had an impacted on the achieved results. “It is through your support that we’ve delivered record headline earnings of E203 million and total revenues of E1 billion for the 2022 financial year,” Fakudze said.

Furthermore, he said there have been global and regional pressures impacting the Eswatini trading environment. He said economic activities had returned to pre-COVID-19 levels as restrictions had been fully-lifted. The bank has rolled out a raft of financing solutions empowering both small and large-scale farmers, to improve operations, contribute to food security and boost commercialisation and export competitiveness.

packages

The finance packages, which are spread across the agriculture and agri-business value chain cover everything from working capital, insurance, distribution and logistics, from farm to table. The loans include Agricultural Production Loan (APL), which is payable within the season. This loan can be acquired for farm inputs and production costs, such as seeds, fertiliser, chemicals or fuel. The second loan is known as Medium Term Loan (MTL). The repayment period for this type of loan is up to 10 years. It is considered ideal for capital expenses. The third type of the loan is known as Asset Finance (AF), Standard Bank said it enabled the customer to lease movable assets such as tractors and trucks, instead of saving up for the equipment over the long-term. The maximum repayment period is 60 months.

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