From K12 billion in 2017 to K10.5 billion in 2018, Standard Bank plc has attributed its 13% profit loss to the Reserve Bank of Malawi’s policy rate cut, that lowered income, despite registering increased lending to customers.

Chief financial officer Temwani Simwaka addressed shareholders at the bank’s annual general meeting in Lilongwe, stating that there was a drop on interest income year-on-year in spite of the balance sheet growth. “Our lending to customers went up year-on-year but because of the decline in terms of interest rates, our income levels went down” said Simwaka.

However, she stated that interest rates may continue going down, which will enable the bank to lend more. Meanwhile, the bank is streamlining credit processes to ensure the bank does not suffer amidst the current and future lending rate cuts. RBM spokesperson Mbane Ngwira confirmed recently that the policy rate review may have affected financial institutions differently, depending on the nature of their operational framework.