Stanbic Bank Profits Up By 26.7% In First-Quarter 2021

Stanbic Bank Holdings has reported a 26.7 percent 2021’ Q1 profits of 1.9 billion shillings from 1.5 billion shillings at the same time the previous year.

The operating income for the lender rose to 6 billion shillings from 5.4 billion shillings on a 21.7 percent rise in non-interest funded income (NFI) to 2.8 billion shillings.

Its total interest income remained flat in the period at Ksh.4.8 billion. Stanbic’s level of gross non-performing loans (NPLs) has increased to 26.4 billion shillings from 21.1 billion shillings.

Stanbic trimmed its level of provisions for the bad loans to 609.5 million shillings from 617 million shillings in March last year. Stanbic has become the first bank to disclose its results for the first quarter of 2021.

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• Stanbic Bank Posts Ksh 5.2 Billion In Profits For 2020

For the 2020 financial year, Stanbic Holdings Plc registered a profit of 5.2 billion shillings reflecting the resilience amidst Covid-19 induced restrictions, subdued interest rates, weakening of the local currency, and increased regulations.

Stanbic was the first bank in Kenya to issue loan moratoriums for individuals, SMEs, and corporates, benefiting over 7,200 clients.  Stanbic focused on assessing how to stimulate the SME sector directly.

The lender restructured loans worth 40 billion shillings of which 3.1 billion shillings related to SMEs. Stanbic bore the costs of the restructures.

Through its insurance franchise, over 400 retrenchment claims were fully paid to assist clients to weather the challenges presented by COVID-19.  The Group waived charges on digital channels to the tune of 283 million in foregone fee revenue and lowered interest rate in line with regulations saving clients KES 665 million in interest thereby reducing the interest income for the lender.