Dar es Salaam. Standard Chartered Bank Tanzania has recorded a significant increase in customers deposits during the first quarter of this year, signifying increased clients’ confidence in the bank’s products and services.
The bank’s total customer deposits grew by 34 percent to Sh1.445 trillion, compared with from Sh1.076 trillion recorded in the same period last year.
The deposit growth cuts across the bank’s corporate and individual banking segments, according to the bank’s statement issued yesterday.
The bank’s Finance Director, Mr Rayson Foya, attributed the customer deposits growth to a number of factors with the main aspects being the increased accessibility of the bank’s products and services through its digital platforms.
“We have continued to see increased banking activity through our digital platforms whereby both our corporate and individual clients are able to transfer funds onto their accounts through the Straight2Bank platform for corporate clients and the Full Digital Bank on Mobile for our individual clients. Currently over 90 percent of our clients’ banking transactions are done digitally. This is mainly due to the convenience, speed and efficiency that’s made possible by transacting through our Digital Capabilities,” said Mr Foya.
The growth in customer deposits has directly resulted into an increase of the bank’s total assets, which have grown by 25 percent, from Sh1.559 trillion to 1.950 trillion during the period.
“We continue to be guided by our brand promise, Here for good, and despite challenges experienced during the period by some of our clients, we have continued to work closely with them, analyzing their business trends, strengths and capabilities thereby ensuring continued lending,” Mr Foya added.
Focusing on the bank’s off-balance sheet items such as the provision of guarantees and Letters of Credit, the bank has also recorded an increase of 47 percent symbolising growth in the bank’s corporate segment activities cutting across various sectors such as trade and mega infrastructure projects.
Last year, the government of Tanzania signed a facility agreement with Standard Chartered Tanzania for a $1.46 billion term loan financing to fund the construction of the Standard Gauge Railway (SGR) project from Dar es Salaam to Makutupora.
Whilst the bank has recorded a decrease in its operating profit by 46 percent, Mr Foya has highlighted that the decrease was mainly due to a one-off provision for key impaired loans.
He also highlighted a slight drop on revenues which was mainly due to low interest income and the increased loan impairment experienced during the period.
Looking forward, Mr Foya said the bank will continue to leverage on its 2021 strategy which focuses on the bank’s Purpose of Partnering and Connection People to Prosperity.
“Our clients continue to be the reason why we are in business, and why we are ‘Here for good’ as per our brand promise. We will continue to work closely with our clients to ensure their prosperity both from individual and corporate perspectives,” Mr Foya said.