Stanbic Bank has recorded a 43% growth in profit after tax for the nine month period ending September 30, 2021.
The lender’s net profit grew to stand at Kshs. 5.1 billion compared to Kshs. 3.6 billion recorded during a similar period last year.
Chief Executive Officer Charles Mudiwa says performance is attributed to the institution’s solid business momentum and implementation of various interventions that have enabled the bank and its clients to weather the volatile environment caused by the pandemic.
“Our performance in this third quarter of 2021 is a true reflection of our unwavering support to our customers to help them grow and realize their full potential. We have done this by providing them with bespoke solutions and client experiences. This speaks to our It Can Be brand positioning strategy which we launched last year with the purpose of empowering our customers and putting their dreams and aspirations at the forefront,” said Mudiwa.
The lender also witnessed a rise in loan loss provision which increased from Kshs. 7.9 billion to Kshs. 8.2 billion as total non-performing loans and advances surged to Kshs. 17.9 billion from Kshs. 16 billion registered during the third quarter of last year.
“Our customer loans grew by 11% to Kshs. 176.6 billion and our revenue increased by 9% to Kshs. 17.5 billion on account of an increase in earning assets, growth in non-financial income and lower cost of funds. We also saw a return on Equity of 16% from 12% and a credit loss ratio going down to 1.41% from 2.90% recorded in the same period last year,” said Abraham Ongenge, Stanbic Bank Kenya Chief Finance Officer.
He went on, “Our costs, excluding loan loss provisions, went up by 15% and the total capital ratio stood at 17.5% against a minimum statutory ratio of 14.5%.”
Total assets declined to Kshs. 295 billion from Kshs. 317.8 billion during the quarter under review while customer deposits also reduced to Kshs. 212.9 billion from Kshs. 226 billion.
Nonetheless, the lender realized a slight growth in non-interest income which grew to Kshs. 7.5 billion compared to Kshs. 7.2 billion recorded last year.
“We are looking forward to a stronger 2022 and a more sustained recovery. We remain committed to protecting Shareholder wealth and putting our customers first, continuously innovating to offer relevant solutions to meet their needs,” Mudiwa added.
Stanbic Holdings Plc, the parent company of Stanbic Bank Kenya declared an interim dividend of Kshs. 1.70 per share in August 2021.
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