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Resilient Stanbic posts Sh4.3b net profit

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Stanbic Holdings Plc weathered a tough operating environment last year to post a KSh 4.3 billion profit after tax (PAT) according to its just released 2017 full year financial results.

The NSE-listed lender’s performance, which translates to a marginal 2% dip in PAT, was driven by an increase in non interest revenue which stood at KSh 8.4 billion, compared to KSh 7.6 billion the previous year. Customer loans and advances also grew by 13% year on year to stand at KSh 130.5 billion.

In a statement issued this morning, the Chief Executive of Stanbic Bank Kenya, Charles Mudiwa, said: “Last year was generally a difficult year for business, due to the intense political activity for the better part of the year. Coupled with the impact of interest rate caps, it was a lot more difficult for the financial services industry. However, we weathered all these to deliver impressive results registering a marginal drop in profits. 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”.

Mudiwa added that the strong performance in non interest revenue is as a result of the successful closure of key deals in Investment Banking and the continuous  strategic focus on leveraging digital platforms to innovatively deliver bespoke financial solutions to the different customer segments. These range from e-Biller, an automated online platform on which businesses can process invoices and generate payment instructions; to m-shares the country’s first mobile phone trading platform that enables one to buy and sell shares, fund their trading accounts, receive payments and get market information from their mobile devices.

“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 are consistently looking for opportunities to deliver convenience to our customers through digital solutions for individuals and businesses,” he added.

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During the year, the bank’s customer deposits grew from KSh 119.3 billion in 2016 to KSh 154.7 billion last year.

Its brokerage arm SBG Securities bounced back from a loss of Ksh7 million in 2016 to post a Ksh32 million profit last year clawing back market share to close the year in second position with 16.38% of the equities trading market.

Stanbic Holdings Plc has maintained dividends at the KSh 5.25 per share that was paid out last year.

Written by
BT Correspondent -

editor [at] businesstoday.co.ke

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