Stanbic Holdings Plc weathered a challenging operating environment last year to post a KSh6.4 billion profit after tax (PAT) according to its just released 2019 full year financial results.
The lender’s performance was driven by a 12% increase in revenue which stood at KSh24.8 billion, compared to KSh22.1 billion the previous year. Customer loans and advances also grew by 4% year on year to stand at KSh152.8 billion. Revenue growth was partly offset by increase in costs arising from reorganising the business and a one off guarantee payment.
Speaking at an investors’ briefing breakfast to announce the results, Stanbic Bank’s Chief Executive Charles Mudiwa said the growth in revenue was as a result of balance sheet growth mainly within personal and business banking, growth in market share in the brokerage business, increase in transactional fees and successful closure of key deals in investment banking.
The net interest income was up by 10% over the same period last year, driven by improved margins within personal and business banking and decrease in cost of funds.
Strong performance in noninterest revenue was as a result of succesful closure of key deals in investment banking, continuous strategic focus on leveraging digital platforms to innovatively deliver bespoke financial solutions to the different customer segments and improved trading revenue.
The brokerage arm SBG Securities continued to report solid growth in income posting a 58% increase in profit after tax at KSh122 million. The business was ranked first position in the Kenyan equities market with a market share of 17.4%.
The Group continued to live its purpose ‘Kenya is our home, we drive her growth’ through several landmark transactions such as the Rubis Energie SAS Take-Over of KenolKobil Plc and the Acorn Green Bond. The Green Bond is the first Green and Project Bond to be issued in East Africa. The proceeds will be used to construct environmentally friendly purpose-built student accommodation.
In its Women proposition dubbed DADA, the Group has interacted with over 5,000 women with a 54% conversion rate and enabled access to funds through loans of over KSh 0.6 billion in just under 7 months.
The Group continues to touch lives through its financial literacy programmes with 28 completed financial fitness sessions in 2019 bringing the total number to 41 Corporates since inception.
Mr Mudiwa added that the Group will continue to focus on deepening client relationships and improving customer service whilst at the same time improving operational efficiency. “We hope to build on this in 2020 to continually deliver better returns to our shareholders, unmatched service to our clientele and ultimately, to move the Kenyan economy forward”.
The Directors have recommended a final dividend of KSh 5.80 having paid an interim dividend of KSh 1.25 for each ordinary share of KSh 5 on the issued and paid up share capital of the company. This brings the total dividend to Ksh 7.05 representing a 22% increase from last year.