Stanbic Holdings full-year profit after tax up 39pc to Kshs. 7.2B

Stanbic Holdings has recorded a full year net profit of Kshs. 7.2 billion for the period ended December 31, 2021 which is a 39% increase when compared to Kshs. 5.2 billion the lender earned the previous year.

Chief Executive Officer Charles Mudiwa attributes the profit growth to improvements in net interest margin and asset quality as the businesses environment recovered from COVID-19 effects.

“Our focus has been on supporting our customers to navigate the pandemic and drive sustainable business growth. We are glad to have achieved this objective courtesy of our dedicated team and strong partnerships with our customers. Our future-ready digital transformation journey continues to simplify our customers’ banking experience in a way that empowers and gives them more control,” said Mudiwa.

The lender saw its loan book grow 17% to Kshs. 185.3 billion from  Kshs. 158.2 billion as net interest margin grew 12% to 4.4% from 3.9% recorded during the previous year.

The resumption of loan repayments also saw the ratio of non-performing loans decline 19% to 9.3% from 11.5% recorded during the corresponding period a year earlier.

Deposits went up 11% to reach Kshs. 242.3 billion from Kshs. 217.4 billion while total assets increased marginally to hit Kshs. 328.9 billion from Kshs. 328.6 billion.

”Our goal is to maintain this positive momentum and continue to build on our client-centric strategy to ensure resilience, growth and remain competitive in this dynamic operating environment,” he added.

While subsidiaries remained profitable during the year under review, South Sudan operations recorded a 21% decline in net profit to stand at Kshs. 300 million on account of challenging operating environment which affected the business.

Shareholders are set to earn half of the profits for the year as Stanbic announced a Kshs.  2.9 billion final dividend bringing the total dividend for the year to Kshs.  3.6 billion.

The lender paid interim dividend amounting to Kshs. 700 million in August last year.