• Total interest income fell to Sh4.7 billion compared to Sh5.2 billion the same period last year.
• Customer deposits grew to Sh203 billion from Sh191 billion while its loan book increased to 161.7 billion from 144.7 billion.
Stanbic Bank Kenya has announced Sh1.5 billion net profit for the quarter ended March 31, 2020, amid a tough operating environment in the wake of Covid-19.
This is despite a drop in total interest income to Sh4.7 billion compared to Sh5.2 billion in the same period last year.
Interest income from loan and advances was Sh3.6 billion, a drop from Sh3.9 billion in Q1 2019.
That from government securities equally fell to Sh899.6 million from Sh1.1 billion in the same period last year.
Total non-interest income decreased to Sh2.3 billion from Sh3.2 billion, blamed on the "declining global economic activity that has stifled growth."
These contributed to a 38.1 per cent drop in net profit compared to last year, where the bank had Sh2.2 billion profit after tax.
Stanbic Bank Kenya CEO Charles Mudiwa said:“The first quarter has indeed put the economy in a difficult position with most sectors struggling to meet targets. Despite this challenge, we have been able to register profit."
The lender's total customer deposits grew to Sh203 billion from Sh191 billion in quarter one of 2019.
The bank’s loan book also saw an increase of 12 per cent to Sh 161.7 billion from 144.7 billion in the first quarter of last year.
Stanbic was among the first to announce customer interventions geared at providing relief from the adverse Covid-19 impact.
The lender provided loan moratoriums to individuals and small and medium-sized enterprises (SMEs), restructuring more than Sh10.9 billion for individuals who had a one-month repayment holiday.
On the other hand, it restructured Sh2.3 billion of SME loans and gave SMEs a three-month loan holiday.
SMEs have been hard hit by the Covid-19 crisis putting a strain on their ability to meet basic functions such as salaries and utility bills.
Quarter one also saw Stanbic underline its commitment to develop and empower women-owned businesses through its DADA platform.
The bank has given Sh727 million to women-owned businesses.
“Our commitment to women-owned businesses is set to increase as we are relaunching DADA to the market with a Sh20 billion fund to accelerate the growth of businesses owned by women,” said Maurice Matumo, head of personal and business banking.
In a statement to media houses, CEO Mudiwa noted that investments under the bank's Covid-19 combating strategy, through the Stanbic Bank Foundation, has now surpassed Sh137 million.
Edited by Henry Makori