Stanbic half year profit rises to Ksh.3.5 billion

Stanbic half year profit rises to Ksh.3.5 billion

Stanbic Holdings Plc has posted a 34.6 per cent rise in earnings through the first six months of the year posting a profit of Ksh.3.5 billion from Ksh.2.6 billion last year.

The rise in profitability at the half year stage is largely attributable to improved operating income and lower costs.

Both the bank’s net interest and non-interest income rose by 9.5 and 10 per cent respectively to Ksh.6.9 billion and Ksh.5.5 billion.

This to push total income up by 9.7 per cent to Ksh.12.4 billion from 11.3 billion in June last year.

Meanwhile, credit impairment charges which dragged down the profitability of banks in 2020 have fallen by 15 per cent to Ksh.1.5 billion from Ksh.2 billion signifying the normalization of non-performing loans (NPLs).

Nevertheless, Stanbic Holdings has marked a rare balance sheet contraction with the Group’s total assets shrinking to Ksh.329.5 billion from Ksh.361.5 billion.

The contraction is largely attributable to constrained lending with the bank’s loans and advances to customers falling by 11.7 per cent to Ksh.207.6 billion from a higher Ksh.235.1 billion.

At the same time, deposits from banks and customers have likewise shrunk to Ksh.260 billion from Ksh.287 billion.

Subsequent to the rise in profitability, Stanbic Holdings earnings per share have improved to Ksh.8.86 from a lower Ksh.6.46.

The lender’s directors have recommended the payment of an interim dividend of Ksh.1.70 per share to be paid latest on September 27. This is after skipping the mid-year pay out in June 2020.

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Stanbic Bank Kenya Stanbic Holdings PLC

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