Standard Chartered strives to support local capital markets
Standard Chartered Bank Botswana, Managing Director (MD), Mpho Masupe says his bank’s role as the Primary Dealer of Government Bonds is not driven by profit but rather a sense of service to the local capital markets.
Speaking at the monthly opening bell ceremony hosted by the Botswana Stock Exchange Limited (BSEL) last Monday, Masupe revealed Standard Chartered has channeled billions of its liquidity into fulfilling this responsibility.
“We have a rich history in this space. In 2018 we came to the market when we were emerging from our fair share of turbulence, with the temporarily sad news that we were activating a gradual programme of recalling all debt notes we had on the exchange time as part of our broader balance sheet restructuring deplane,” reflected the MD.
How times have improved since!
The ceremony also saw Standard Chartered launch two tranches of Stanchart corporate bonds – the company’s 8th and 9th.
“This speaks directly to the needs and aspirations of investors, while at the same time fulfilling our liquidity needs,” Masupe said.
He noted the bank has built on past failings, with financial and operational performance recovering steadily since the historic P233 million loss of 2017.
“We have always promised that we would not be comfortable with peaks and troughs, but rather a consistent, sustainable upward trajectory and we have achieved that,” he said, adding the bank bounced back to the profitability of P20 million the following year.
Impressive year-end performances of P69 million and P102 million have since followed, with mixed fortunes expected this year.
“Barring the unforeseen, 2021 is not as bad as we had feared, although not as good as we would have hoped, owing to Covid-19,” mused Masupe.
The MD proudly added the bank’s growth has been broad-based, with the retail business showing significant growth from products, assets, revenue, and profitability perspective.
Delivering further good news, Masupe revealed that after three years of struggle, corporate business [banking services offered only to corporates] has started to make a profit.
Meanwhile, Masupe added the market has recognised the bank’s efforts, with the share price recovering 32 percent in the last 18 months. He remains optimistic more is to come!