Companies

Stanbic posts 45pc net profit jump to Sh6bn

cfc

Stanbic Bank along Kimathi Street, Nairobi. FILE PHOTO | NMG

Stanbic Holdings has posted 45.5 per cent jump in net profit to Sh6.27 billion for the full year ended December 2018, supported by growth in both interest and non-interest income.

Net interest income grew by 14 per cent to Sh12.13 billion from Sh10.6 billion posted at the end of previous financial year.

During this period, non-interest income, mainly from fees and commissions, grew by 18.3 per cent to Sh9.96 billion.

The bank said this is a strong performance in an interest rate cap regime was supported by prudent lending decisions.

Stanbic, which runs Stanbic Bank and SBG Securities, becomes the first one to release full year results with the rest of lenders expected to do so by the end of month.

Final dividend

Against this improved performance, the board has proposed a final dividend of Sh3.55 per share.

When added to the Sh2.25 interim dividend paid last year, it will add up to Sh5.80 per Sh5 ordinary share.

Stanbic Bank's total interest income rose to Sh18.87 billion from Sh16.59 billion due to increased income from loans and advances to customers as well as government securities.

Interest expense was however high by 10.7 per cent to Sh11.72 billion on account of holding more customer deposits.

Non-interest income growth came on the background of 14per cent rise in foreign exchange trading income to Sh2.68 billion.

Fees and commissions grew by 15.5 per cent to Sh3.73 billion.