Stanbic Holdings after tax profit dips by 2pc

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A hard operating environment last year coupled with a new interest rate regime are to blame for a 2 percent drop in Stanbic Holdings profit after tax.

This saw the bank post a profit after tax amounting to 4.3 billion shillings in the full year ending December last year.

Chief executive Charles Mudiwa however says the bank recorded a surge in non-interest revenue which was boosted by among others, digital banking channels.

A prolonged electioneering period especially during the last two quarters of last year continues to impact on Kenyan companies’ bottom line due to reduced business activity during the period.

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Mudiwa says impact of interest rate caps strained their operations noting that it was a lot more difficult for the financial services industry.

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To this end the bank has reported a reduction in profit after tax which dipped 2% from KES 4.4 billion to KES 4.3 billion in 2017. Growth was however sustained by an increase in the non-interest income which surged to KES 8.4 billion, from KES 7.6 billion recorded a year earlier.

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Mudiwa says this was supported by successful closure of key deals in Investment Banking and the continuous strategic focus in leveraging digital platforms.

He cites e-Biller, an automated online platform enabling customers to process invoices and generate payment instructions and m-shares the country’s first mobile phone trading platform which allows users to buy and sell shares, fund their trading accounts, receive payments and get market information from their mobile devices.

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During the same period loans and advances also grew by 13% year on year to stand at KES 130.5 billion. Similarly, customer deposits also recorded growth, from KES 119.3 billion in 2016 to KES 154.7 billion last year.

SBG Securities, Its brokerage arm also recovered from a loss of KES 7 million in 2016 to post a KES 32 million in 2017. Dividend payout remains unchanged at KES 5.25 per share.

 

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