Stanbic Bank’s Half Year Profit Up by 14%

Stanbic Bank has reported a 14 percent jump in profit after tax in Half Year results for the year ending June 30, 2019.

The group’s profits were majorly driven by the loan portfolio which grew by 19 percent hitting Sh161.9 billion from Sh136.5 recorded in last year’s performance, while the company’s customer deposits were up by 20 per cent closing at Sh201.6 billion from Sh167.3 billion in the same period ending June 30, 2018.

Speaking while announcing the results, Stanbic Bank Kenya Chief Executive Officer Charles Mudiwa, said the results was a clear demonstration of projected growth in future.

“The results are a reflection of the unstinting support we continue to get from our clients and partners, despite operating in what remains to be a challenging business environment,” said Mudiwa.

The lender’s net profit which involves Kenyan outlets, those in South Sudan, SBG Securities and Stanbic Insurance Agency Limited registered Sh41 billion profit compared to last year’s review where the organization registered Sh3.6 billion.

The performance was also supported by a strong showing from non-interest revenue.

The brokerage business – SBG Securities – reported Sh82 million in profit after tax, more than double the previous half year’s performance of Sh32 million.

Earnings Per Share (EPS) were reported at Sh10.28, having risen from the previous Sh8.99, denoting a rise in profitability.

Shareholders of Stanbic Holdings will receive Sh1.25 dividends per share.

The announcement of the results came amid reports of the impending dismissal of 255 employees, a move aimed at reducing the company’s wage bill.

Stanbic Bank is the latest Kenyan bank to announce retrenchments, following in the footsteps of National Bank which fired 112 employees in June.

In 2017, Absa Group which rebranded from Barclays Bank fired 323 employees while Family Bank fired 150 staffers