Stanbic posts Sh4.3bn net profit in 2017
Stanbic Holdings Plc has registered Sh4.3 billion in net profit for the 2017 financial year which represents a two percent dip in profits from a similar period in 2016.
The dip in profits has been attributed to a turbulent business environment in 2017 which saw an extended electioneering period coupled with interest rate capping by the Central Bank of Kenya and an increase in non-performing loans.
Stanbic Bank Kenya chief executive officer Charles Mudiwa said the bank was able to weather the shocks and post a marginal drop in profitability.
“It was a lot more difficult for the financial services industry. We hope to build on this in 2018 to continually deliver better returns to our shareholders, unmatched service to our clientele and ultimately, to move the Kenyan economy forward,” Mr Mudiwa said.
The Sh4.3 billion profits was largely rooted in the growth of non-interest revenue from Sh7.6 billion in 2016 to Sh8 billion.
Mr Mudiwa said the strong performance in the bank’s non-interest revenue base was as a result of the closure of key deals in investment banking and the continuous focus on leveraging digital platforms for the provision of enhanced financial solutions to clients.
Mr Mudiwa further expects the continuous service delivery to customers through digital solutions.
“The future is digital. With increasing penetration of the internet in Kenya, mostly driven by the proliferation of mobile and growth of mobile money, we have consistently looking for opportunities to deliver convenience to our customers through digital solutions for individuals and businesses,” he added.
During the year, the bank’s customer deposits also rose to Sh153 billion while total loan and advances grew to Sh130 billion.
As a result of the recorded growth, the Stanbic board has maintained its dividend pay-out at Sh5.25 per share.
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