Stanbic Q1 profits rise by 27 per cent to Ksh.1.9 billion

Stanbic  Bank Kenya has posted a 26.7 per cent increase in earnings across three months to March with its profits ring to Ksh.1.9 billion from Ksh.1.5 billion last year.

The strong rebound in earnings for the lender at the start of the year is anchored on enhanced revenue streams in the period.

Stanbic’s total operating income for instance surged to Ksh.6 billion from Ksh.5.4 billion supported largely by a 21.7 per cent hike in non-interest funded income (NFI) to Ksh.2.8 billion.

While total interest income remained flat in the period at Ksh.4.8 billion, a hold in the growth of interest expenses saw the bank post an improved Ksh.3.2 billion net interest income.

Subsequent to the improved earnings, Stanbic’s earnings per share (EPS) have risen to Ksh.11.04 from Ksh.8.97 at the same stage in 2020.

The lender’s assets now stand at Ksh.317 billion from Ksh.309.7 billion last year.

Nevertheless, the bank’s new loan issuance has slowed down with net loans and advances shrinking to Ksh.157.9 billion from a higher Ksh.161.8 billion.

At the same time, Stanbic’s level of gross non-performing loans (NPLs) have increased to Ksh.26.4 billion from Ksh.21.1 billion.

Stanbic has however trimmed its level of provisions for the bad loans to Ksh.609.5 million from Ksh.617 million in March last year.

The lender has become the first among its peers to disclose its first 2021 earnings.

Other banks are expected to declare their earnings for the period later this month.