Stanbic’s net profit hit Sh6.4bn supported by a jump in revenue

Stanbic’s net profit hit Sh6.4bn supported by a jump in revenue

March 2, 2020 0 By mykenyancareers
cfc stanbic - Stanbic’s net profit hit Sh6.4bn supported by a jump in revenue
The growth in revenue was as a result of several factors among them balance sheet growth mainly within personal and business banking and growth in market share in the brokerage business/FILE

NAIROBI, Kenya, Mar 2 –  Stanbic Holdings Plc has posted a jump in its net profit to Sh6.4 billion for the full year ended December 2019, supported by an increase in revenue.

Revenue
grew by 12 percent to hit Sh24.8 billion, compared to Sh22.1 billion recorded the
previous year.

Stanbic Bank’s Chief Executive Charles attributed the growth in revenue to several factors among them balance sheet growth mainly within personal and business banking and growth in market share in the brokerage business.

It was
also influenced by an increase in transactional fees and the closure of key
deals in investment banking.

Profitability was also driven by net interest income, which grew by 10 percent, driven by improved margins within personal and business banking and a decrease in the cost of funds.

During the period under review, customer loans and advances grew by 4 percent year on year to Sh152.8 billion.

Stanbic
Holding’s brokerage arm SBG Securities continued to report solid growth in
income posting a 58 percent increase in profit after tax at Sh122 million.

Mudiwa said that going forward, the bank will continue to focus on deepening client relationships and improving customer service whilst at the same time 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”.

Owing to the improved performance, shareholders will earn a final dividend of Sh5.80 after an interim dividend of Sh1.25 for each ordinary share of Sh5 is paid.

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