- Gross earnings grew to Sh2.92 billion compared to Sh2.57 billion.
- Stanbic Bank's cover for bad loans fell by 19.4 per cent from Sh609.5 million to Sh491.3 million
Image: STANBIC
Stanbic Bank Kenya's net earnings for the first three months of 2022 rose to Sh2.1 billion compared to Sh1.8 billion same period last year, a 15.7 per cent growth.
The financial results released Monday shows the lender's balance sheet grew to Sh331.03 billion up from Sh317 billion a year ago.
Gross earnings grew to Sh2.92 billion compared to Sh2.57 billion.
The growth in profitability for the lender is largely attributable to higher revenue in the period and a drop in loan loss provisioning.
''Stanbic Bank Kenya has been on an upward trajectory owing to its strategic stakeholder engagements and partnerships,'' the lender said.
Stanbic’s total operating income has, for instance, soared by 13.3 per cent to Sh6.8 billion from Sh6 billion on the backdrop of a 15.6 per cent growth in net interest income at Sh3.7 billion.
The lender's non-interest-funded income grew by 7.1 per cent to Sh3 billion from Sh2.8 billion in the same period.
Its non-interest-related costs have grown below income at 11.8 per cent to Sh3.8 billion from Sh3.4 billion.
Stanbic Bank's cover for bad loans fell by 19.4 per cent from Sh609.5 million to Sh491.3 million as businesses recover from Covid-19.
The fall in provisions is also anchored on a 6.8 per cent drop in gross non-performing loans to Sh24.6 billion from Sh26.4 billion.
The lender's net loans and advances grew by 30.8 per cent in the period to Sh206.5 billion from Sh157.9 billion in the same period in 2021.
At the same time, the lender’s customer deposits have improved by 3.8 per cent to Sh235.1 billion from Sh226.6 billion in March last year.
Stanbic Bank Kenya's earnings per share have improved to Sh12.37 from Sh11.04 subsequent to the profit jump.
Banks in the country are expected to continue with their growth trajectory this quarter as witnessed at the end of last year's earnings.
Already two listed lenders led by Equity Bank have recorded growth in net profits.
Last week, Equity reported a 36 per cent growth to Sh11.86 billion while NCBA Bank recorded Sh3.6 billion in net earning, a 20 per cent growth.