Stanbic Half Year Profit Rises To Ksh.4.8 Billion

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Stanbic Holdings Plc has posted a 37 per cent growth in profit after tax to Ksh.4.8 billion through six months of operations to June 2022.

The rise in profit from Ksh.3.5 billion is largely attributable to growing revenues with total income closing the period at Ksh.15.2 billion from Ksh.12.4 billion.

Net interest income for the lender was up by 20.3 per cent at Ksh.8.3 billion while non-interest revenue rose faster by 26 per cent to Ksh.6.9 billion.

Stanbic Bank Kenya Chief Finance Officer Dennis Musau says the bank’s set of half-year results show resilience against the multi-pronged shocks including rising interest rates and geopolitical tensions.

He attributes growth in net interest income to a lower funding base and an improved investment banking business in the opening half for the growth in non-funded income (NFI).

“You will see a commensurate growth in our loan book, giving us the annuity income we would like to see. Secondly, margin increases from a lower cost of funding has helped grow income,” he said.

Growth in total operating expenses for the Group trailed the rise in income at 19.7 per cent as credit impairment charges fell by 13.3 per cent to Ksh.1.3 billion from Ksh.1.5 billion.

Stanbic’s total assets hit Ksh.341.6 billion as net loans and advances to customers lifted off by 17.5 per cent to Ksh.244 billion from Ksh.207 billion previously.

The lender expects momentum in the second half of the year after the completion of the General Elections and the expected installation of a new government administration.

Despite the notable profit rise, the lender has held off against issuing an interim dividend as it preserves capital to finance a further growth expansion.

“In determining the dividend decision, it is important for us not to compromise on the future growth of the business. Having looked at our performance in the first half, the pipeline of deals and the environment going into the second half of the year, we think it is prudent at this point not to pay an interim dividend at the behest of ensuring that we can finance future growth,” added Dennis Musau.

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