Stanbic Holdings PLC posts KSh4.3B profit after tax

By Fred Odhiambo

In summary

• strong performance in non interest revenue is as a result of the succesful closure of key deals in Investment Banking and the continuous  strategic focus on leveraging digital platforms
• During the year, the bank’s customer deposits grew from KSh119.3 billion in 2016 to KSh154.7 billion last year
• Stanbic Holdings Plc has maintained dividends at the KSh5.25 per share that was paid out last year.
• Customer loans and advances grew by 13% year on year to stand at KSh130.5 billion

Stanbic Holdings Plc weathered a tough operating environment last year to post a KSh4.3 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 KSh8.4 billion, compared to KSh7.6 billion the previous year. Customer loans and advances also grew by 13% year on year to stand at KSh130.5 billion.

In a statement, 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”.

Mr Mudiwa added that the strong performance in non interest revenue is as a result of the succesful 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.

During the year, the bank’s customer deposits grew from KSh119.3 billion in 2016 to KSh154.7 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 KSh5.25 per share that was paid out last year.

Stanbic Bank Kenya provides the full spectrum of financial services. It’s Corporate and Investment Banking division serves a wide range of requirements for banking, finance, trading, investment, risk management and advisory services. Corporate and Investment Banking delivers this comprehensive range of products and services relating to: investment banking; global markets; and global transactional products and services.

Stanbic Bank’s corporate and investment banking expertise is focused on industry sectors that are most relevant to emerging markets. It has strong offerings in oil, gas and renewables; power and infrastructure and agriculture.

With regard to personal and business banking, Stanbic Bank Kenya offers banking and other financial services to individuals and small-to-medium enterprises. This unit serves the increasing need among Africa’s small business and individual customers for banking products that can meet their shifting expectations and growing wealth.