Stanbic Bank half year net profit has grown 37% from 2.6 billion to Kshs. 3.5 billion for the period ended June 30th 2021.
The lender attributes profit surge to increased revenues, lower impairment charges and tax adjustments.
Stanbic announced a revenues growth of 10% from Kshs. 11.3 billion recorded last year to Kshs. 12.4 billion in what the Chief Executive Officer Charles Mudiwa says was supported by a solid business momentum and interventions the lender deployed to withstand effects of COVID-19.
“We started the year by repositioning our brand through a message of hope dubbed, ‘It Can be’. This message speaks to the commitment and support that drive us to deliver on our promise. We have realigned our strategy to focus more on our customer needs through our client-centricity value proposition and providing innovative solutions that are empowering and blend in with their lifestyle,” said Mudiwa.
The bank also witnessed a significant reduction in the ratio of non-performing loans to gross loans which eased to 9.9% in the half year compared to 10.2% as customers affected by covid resumed paying loans.
During the period, the bank registered a 3% growth in loan book which grew to Kshs. 165.1 billion from Kshs. 161 billion last year.
“Net interest earnings grew by 9% on account of loan book growth and improved margins. The interest rates have relatively been muted with the benchmark rate maintained at 7% from last year,” said Abraham Ongenge, Stanbic Bank Chief Finance Officer.
Similarly, customer deposits recorded a 9% growth to hit Kshs. 228.9 billion.
The lender declared an interim dividend of Kshs. 1.70.