Lender's profits dips, deposits swell to Sh119bn

juma chrispinus

February 25, 2017 10:22 AM

The management at the lender attributes the decline to the political dissidence in its subsidiary civil war –torn South Sudan, as the African country’s economy goes on its knees.

Stanbic Bank has recorded a 10 per cent dip in 2016 full year net profit to Sh4.4 billion.

The management at the lender attributes the decline to the political dissidence in its subsidiary civil war –torn South Sudan, as the African country’s economy goes on its knees.

Stanbic Bank Chief Executive Philip Odera told investors that increased regulation in the banking sector and a depressed stock market also impaired the group performance.

“A decrease in SBG Securities revenues in the current year following decreased activity in the Nairobi Securities Exchange affected the business. Growth in impairment charges due to increased general debt provisions aligned to challenging operating environment also affected our bottomline,” Odera said.

Customer base

Despite the dip in profits, customer deposits grew by 12 per cent and now stands at Sh119 billion. The lender’s loan book swelled to Sh115 billion, representing 19 per cent increase compared to last year.

On the other hand, total assets hit a new Sh214 billion mark in the period under review.

Net interest income also increased by 17 per cent to its current value of Sh10.8 billion attributed to a 10 per cent growth in customer loans and advances and improved margins within the first three quarters of the year, the lender said on Friday.

Commenting on the Brexit phenomena that hit the financial markets globally, Odera says even with the critical changes in the financial sector, which included proposed new capital requirements in the finance bill by the CBK, Change in the US foreign Policy as well as Brexit, the sector is resilient enough to overcome.

juma chrispinus