Stanbic bank Q3 net profit up 43% to Ksh.5.1 billion

Stanbic bank Q3 net profit up 43% to Ksh.5.1 billion

Stanbic Bank Kenya’s net profit for its Q3 results surged 43 percent to post Ksh.5.1 billion up from Ksh.3.6 billion recorded same period last year.

The performance is attributable to the interventions it put in for its customers to weather the negative effects of the coronavirus pandemic.

“Our performance in this third quarter of 2021 is a true reflection of our unwavering support to our customers to help them grow and realize their full potential. We have done this by providing them with bespoke solutions and client experiences,” said the bank’s Chief Executive Charles Mudiwa.

Customer loans grew by 11 percent to Ksh.176.6 billion and revenue increased by 9 percent to Ksh.17.5 billion on account of an increase in earning assets, growth in non-financial income and lower cost of funds.

The lender also saw a return on equity of 16 percent from 12 percent and a credit loss ratio went down to 1.41% from 2.90% recorded in the same period last year.

” Our costs, excluding loan loss provisions, went up by 15% and the total capital ratio stood at 17.5% against a minimum statutory ratio of 14.5%.” said the lender’s Chief Finance Officer Abraham Ongenge.

The bank has declared an interim dividend of 1.70 per share.

On November 16 this year, Stanbic Foundation partnered with the United States African Development Foundation (USADF) to provide Ksh.33 million grant funding to MSMEs, cooperatives, and producer groups in Kenya to help them grow their businesses.

The seven winners of the grant were selected from 500 applicants across the country who demonstrated resilience and promise to grow and manage their businesses in a sustainable way.

During the selection, the winners were able to show how their businesses will have an impact and transform underserved and at-risk communities, more so young women, youth and other marginalized groups

With 7.4 million Small and Medium Enterprises (SMEs) in Kenya who employ about 14.9 million people, the lender is leveraging this demography with its Financial Fitness Academy to train individuals on how to take a holistic approach to their financial affairs.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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