The share price of Standard Bank Plc on Monday soared to K4,400 to propel the company’s market capitalisation surpass MK1 Trillion mark.
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 NBM’s K1.3 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. 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,” said Madinga.
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. Financial stocks like Standard Bank are seen as relatively safer in this market because of their impeccable risk management profile, and prudence, ” said Jackson.
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.