The bank’s net interest income declined by two per cent to Sh10.6 billion.
Stanbic announced it will pay an unchanged dividend of Sh5.25 per share for the year.
Stanbic Holdings’ #ticker:CFC after-tax profit fell by 2.5 per cent to Sh4.3 billion for the full year ended December 2017, weighed down by higher impairment charges due to an increase in non-performing loans (NPLs).
The lender’s financial statements released Monday show a 48 per cent rise in NPLs to Sh10.35 billion from Sh7 billion in 2016, which in turn resulted in a 58 per cent increase in credit impairment charges to Sh2.76 billion.
The bank’s net interest income also declined by two per cent to Sh10.6 billion from Sh10.9 billion in 2016, in spite of an eight per cent rise in the loan book to Sh143.3 billion.
“This (drop in profit) was as a result of a number of factors that affected the bank in the year 2017, with the most prominent being the interest rate cap and an increase in non-performing loans,” said ABC Capital in an analysis of the Stanbic results Monday.
The bank announced it will pay an unchanged dividend of Sh5.25 per share for the year, which consists of a final dividend of Sh4 per share in addition to the interim dividend of Sh1.25 paid earlier in the financial year.
