Stanbic Bank’s profit fell 12 percent in the first half of this year following reduced lending and income from interest on loans. The bank’s profit for the six months to June stood at Sh1.7 billion, down from 1.9 billion shillings last year. Interest income fell by 450 million shillings as the bank cut back on home loans to focus on overdrafts and term loans. According to the banks Chief Finance Officer Abraham Ongenge, Customer loans, and advances grew by seven percent year-on-year, mainly on term lending. The bank’s earnings from fees and commissions sustained revenues outside interest rates charged as well as foreign currency trading, bringing the total non-interest income from 3.7 billion shillings in the first half of last year to 4.1 billion shillings this year. “Income from trading decreased from 2.2 billion shillings to 2 billion shillings due to slow interest rate volatility,” added Ongenge This was partly offset by customer foreign exchange volumes increasing by 13 percent year on year and foreign exchange margins increasing by 48 percent. Bad loans continued to soar, forcing Stanbic Bank to more than double part of its income to cushioning itself against the non-performing loans from 834 million shillings last year to 1.8 billion shillings this year.
Vera Shawiza is Soko Directory’s in-house journalist. Her zealous nature ensures that sufficient and relevant content is generated for the Soko Directory website and sourcing information from clients is easy as smooth sailing.Vera can be reached at: (020) 528 0222
Email: [email protected]