Stanbic profit dips 19 per cent
By Brenda Kerubo | March 6th 2021
Stanbic Holdings has posted a Sh5.2 billion profit after tax for the period ending December 2020, a 19 per cent decline from the Sh6.38 billion reported in 2019.
The group, which consists of the Kenyan and South Sudan banks, SBG Securities and Stanbic Insurance Agency, says it weathered a challenging operating environment linked to Covid-19 restrictions meant to curb the spread of the disease.
Waivers on mobile money fees to cushion customers against Covid-19 cost the company Sh283 million in foregone revenue while a reduction in brokerage fees negatively impacted non-interest income for the bank, which fell nine per cent to Sh10.441 billion.
“In uplifting our clients financially, we issued repayment holidays and moratoriums to 7,203 clients,” said Stanbic Chief Financial Officer Abraham Ongeng.
“We also restructured loans worth Sh40 billion, directing Sh3.1 billion towards small and medium-sized enterprises, and lowered interest rates in line with regulations, saving our clients Sh665 million in interest.”
The group increased its provisioning to reflect the worsening credit risk on the back of layoffs and liquidity constraints on businesses caused by the pandemic.
However, customer deposits increased by 12 per cent while customer loans and advances grew by four per cent.
“Despite a challenging operating environment, I am proud that Stanbic stood shoulder to shoulder with our clients and the Kenyan community when it really mattered most,” said Stanbic Bank Kenya Chief Executive Charles Mudiwa.
“We supported clients through our DADA proposition where we onboarded over 10,000 women while issuing loans worth Sh844 million to support them and their businesses.”
Reduction in Central Bank Rate by 200 basis points, subdued interbank rates and lower yields on short-term government paper resulted in a four per cent decline in net interest income to Sh12.8 billion.
Take a quick survey and help us improve our websiteTake a survey
71-year-old man admits to raping woman
- 'Fake' engineer arraigned
By Brian Okoth
- Kenyans to pay more for cooking gas beginning July
- Three dead in brazen night shooting in Changamwe
- Senator Moi meets US Chief of Mission to Kenya
- Minor dies after being hit over Sh10
By Anne Atieno