NAIROBI, AUGUST 10 ― Stanbic Holdings Plc profit for the six months to June more than doubled, buoyed by interest earnings from its growing loan book and returns from its investments.
The Nairobi Securities Exchange listed lender has reported a Ksh3.55 billion after-tax profit for the period, a 104 per cent leap from Ksh1.74 billion same period last year.
The group registered a 21.3 per cent growth on its loan book during the six months closing at Ksh154.03 billion (loans and advances to customers and banks) an increase from Ksh177.86 billion it has advanced in the first six months of 2017.
Its banking unit- Stanbic Bank recorded an after-tax profit of Ksh3.48 billion in the period up from Ksh1.72 billion in the same period last year.
During the six months, cash flow generated from operating activities grew threefold (197.9 per cent) to Ksh4.44 billion up from Ksh1.49 billion a similar period last year.
The half year profit reflects positive business at the lender which closed the 2017 financial year with a net profit of Ksh4.31 billion.
Last years’ average earnings were pegged on a tough operating environment especially in Kenya where the country had a prolonged general election which disrupted the general business environment.
This coupled with the interest rate cap law in the country denied banks maximum profits which reflected in most businesses’ balance sheets.
Most businesses have expressed optimism that 2018 is likely to be a good year especially with the rebound of the country’s economy following political stability.
Stanbic has been keen to grow its business in Kenya and the region with a focus on two key business segments – Corporate and Investment Banking and Personal and Business Banking that leverage the skills, economies of scale and synergies that come from being part of an international group.
Stanbic Bank Kenya is a subsidiary of Stanbic Holdings Plc. Which is in turn a subsidiary of Stanbic Africa Holdings Limited (SAHL).
SAHL IS owned by Standard Bank Group Limited (SBG), Africa’s banking and financial services group.
Stanbic Bank Kenya Limited owns 100 per cent of Stanbic Nominees Limited and Stanbic Insurance Agency Limited (SIAL). The Bank’s sister company SBG Securities Limited owns 100 per cent of SBG Securities Nominees Limited.