Stanbic Posts Ksh 6.4 Billion In Profit For Financial Year 2019

Stanbic Bank has announced its financial results for 2019 where it posted a 6.4 billion shillings in profit.

However, the lender says it would have earned more if it was not for the restructuring process that it underwent during the financial year.

The new earnings by Stanbic recorded a marginal 1.6 percent increase even as the bank is trying to recover from the cost incurred during its restructuring.

Stanbic announced its operating expenses grew to 13.9 billion shillings which were a 20 percent increase. The lender’s cost to income ratio (CIR) also increased by 12 percent during the same period.

Customer loans grew by four percent with customer deposits increased by one percent. Stanbic’s net interest rose to 13.3 billion shillings which were a 10 percent increase.

The bank said that its shareholders will receive a 7.5 shillings dividend payout up from 5.80 the previous year. Stanbic Bank Kenya Chief Executive Officer Charles Mudiwa said,” The dividend pay-out commensurate with where we think shareholders should have gotten in their return.”

Mr. Mudiwa added that the bank’s costs review has freed up its new growth margins while the one-off restructuring costs which trimmed into the banks’ earnings.

“We now can present our customers with investment solutions cutting across all financial platforms. We now have a customer-centric business anchored on digitization and competition, ”Mudiwa said.

During its cost review process, Stanbic used its Voluntary Early Retirement Program which affected 88 of its employees. The VER program cost the lender 773 million shillings.

However, the bank started a digitization program where it absorbed 35 people in its data science program.

Currently, the bank boasts to have employed over 1000 individuals in its 24 branches countrywide. Stanbic also has 40 Automated Teller machines together with its advanced online banking services. Technology has made it easier and faster to find its teller machines by just a click of a button.

READ: Stanbic Gives Hope To 2020 Despite Fears Of Sharp Economic Downturn