FINANCIALS

Stanbic Bank's net profit up 2% for 2019 on steady revenue

The brokerage arm SBG Securities reported solid growth in income posting a 58 per cent increase in profit after tax at Sh122 million.

In Summary
  • Customer deposits soared to Sh152.8 billion during the year under review, a four per cent growth compared to Sh146.6 billion in 2018.
  • This brings the total dividend to Sh7.05 representing a 22 per cent increase from last year.
CFC Stanbic bank. Photo/Monicah Mwangi
CFC Stanbic bank. Photo/Monicah Mwangi

Steady revenue growth saw Stanbic Holdings Plc post a two per cent growth in net profit for the year ended December 2019 compared to the previous year.

The Nairobi Securities Exchange (NSE) listed lender has reported a net profit of Sh6.4 billion up from Sh6.3 billion in 2018, with revenues rising 12 per cent to Sh24.8 billion compared to Sh22.1 billion the previous year.

The bank's chief executive Charles Mudiwa told an investor briefing the higher revenue resulted from balance sheet growth mainly in personal and business banking, growth in market share in the brokerage business, increase in transactional fees and successful closure of key deals in investment banking.

 

Mudiwa said the Group will continue to focus on deepening client relationships and improving customer service whilst improving operational efficiency.

“We hope to build on this in 2020 to continually deliver better returns to our shareholders, unmatched service to our clientele and ultimately, to move the Kenyan economy forward,'' Mudiwa said.

Customer deposits rose to Sh152.8 billion during the year under review, a four per cent growth compared to Sh146.6 billion in 2018.

The net interest income on other hand was up by 10 per cent over the same period last year, driven by improved margins within personal and business banking and decrease in cost of funds.

Strong performance in non interest revenue was as a result of successful closure of key deals in investment banking, continuous strategic focus on leveraging digital platforms to innovatively deliver bespoke financial solutions to the different customer segments and improved trading revenue.

The brokerage arm SBG Securities reported solid growth in income posting a 58 per cent increase in profit after tax at Sh122 million.

The business was ranked first position in the Kenyan equities market with a market share of 17.4 per cent

 

Directors h recommended a final dividend of Sh5.80 having paid an interim dividend of Sh 1.25 for each ordinary share of Sh5 on the issued and paid up share capital of the company.

This brings the total dividend to Sh7.05 representing a 22 per cent increase from last year.