Stanbic profit dips 33pc amid sluggish economy

Stanbic Bank Kenya has posted a 33.4 per cent drop in profit for the first quarter of the year, attributed to a slowed global economic growth.

The lender made Sh1.5 billion profit for the quarter ended March 2020 compared to Sh2.3 billion posted in a similar period in 2019. Chief Executive Charles Mudiwa attributed the drop in profit to falling interest income, which reduced to Sh2.3 billion from Sh3.3 billion during a similar period last year.

This was despite increased customer deposits and a growing loan book.

“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 and an increase in total customer deposits which grew to Sh203 billion from Sh191 billion in quarter one of 2019,” he said in a statement yesterday.

The bank’s loan book grew 12 per cent to Sh161 billion from 144.7 billion in the first quarter of 2019. The lender was among the first banks to announce relief measures for customers from the Covid-19 pandemic.

It also restructured loans worth Sh10.9 billion to individuals who had a one-month repayment holiday. It also restructured Sh2.3 billion of Small and Medium Enterprises.

The first quarter saw Stanbic focus on developing and empowering women-owned businesses giving Sh727 million.

“Our commitment to women-owned businesses is set to increase. We are relaunching Dada to the market with a Sh20 billion fund to accelerate the growth of businesses owned by women,” said Head of Personal and Business Banking Maurice Matumo.