Stanbic full year profit falls by 19% to Ksh.5.2 billion
Stanbic Holdings Plc has announced an 18.7 per cent dip in profit after tax with earnings for the year ending in December 2020 falling to Ksh.5.2 billion from Ksh.6.4 billion.
The dip in earnings is largely attributable to falling operating income with total income in the period sliding by 6.5 per cent to Ksh.23.2 billion from Ksh.24.8 billion last year.
The income was further slashed to Ksh.18.4 billion from Ksh.21.6 billion last year after accounting for impairment charges.
Nevertheless the Group behind Stanbic Bank Kenya found more efficiency from its recent cost containment measures with total operating expenses sliding by 13 per cent to Ksh.12.1 billion from Ksh.13.9 billion in December 2019.
Stanbic Bank Kenya Limited profit for the period meanwhile stood at Ksh.5.2 billion or an equivalent 16.1 percentage points lower than a higher Ksh.6.2 profit a year earlier.
The bank’s total operating income stood at Ksh.22 billion from Ksh.23.5 billion with the lending segment having recorded marginal declines in both interest and non-interest funded income (NFI) revenue heads in the period.
While the Group’s overall operating expenses cooled down, loan loss provision costs shot up by 65.4 per cent to Ksh.4.3 billion from Ksh.2.6 billion with the bank moving to cover its exposure to potential credit losses from lending.
The bank incidentally had a higher loan-loss exposure with the stock of gross non-performing loans growing by 29.5 per cent to Ksh.25 billion from Ksh.19.3 billion in 2019.
Stanbic Holdings has nevertheless defied its business constraints tied to the pandemic to declare a surprise final Ksh.3.80 dividend from Ksh.7.05 a year ago.
The Group’s earnings per share in the period however closed at a lower Ksh.13.13 from Ksh.16.14.
The Group however has stronger buffers to manage the fluid COVID-19 environment with Stanbic Bank’s core capital for instance rising to Ksh.40 billion from Ksh.36.1 billion.
Moreover, the bank remained liquid to meet any short-term funding requirements with its liquidity ratio sitting at 56.4 per cent slightly lower than 58.4 per cent in December 2019.
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