Stanbic Holdings Plc Posts KSh.4.3 Billion Profit After Tax

Stanbic Holdings Plc has posted a 4.3 billion shillings profit after tax (PAT) on their 2017 full year financial results.

The NSE-listed lender’s performance which translates to a marginal 2 percent dip in PAT, was driven by an increase in non-interest revenue which stood at 8.4 billion shillings, compared to 7.6 billion shillings the previous year.

Customer loans and advances also grew by 13 percent year on year to stand at 130.5 billion shillings.

During the year, the bank’s customer deposits grew from 119.3 billion shillings in 2016 to 154.7 billion shillings last year.

Its brokerage arm SBG Securities bounced back from a loss of 7 million shillings in 2016 to post a 32 million shillings profit last year clawing back market share to close the year in the second position with 16.38 percent of the equities trading market.

The Chief Executive of Stanbic Bank Kenya, Charles Mudiwa noted that 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,” said Charles Mudiwa.

Mudiwa added that the strong performance in non-interest revenue is as a result of the successful 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,” said the CEO.

According to Mr Charles Mudiwa, the future is digital with increasing penetration of the internet in Kenya, mostly driven by the proliferation of mobile, and growth of mobile money, banks are consistently looking for opportunities to deliver convenience to their customers through digital solutions for individuals and businesses.

Stanbic Holdings Plc has maintained dividends at the 5.25 shillings per share that were paid out last year.