Announcement of the results/COURTESY
NAIROBI, Kenya, Feb 24 – Stanbic Bank has recorded 10 per cent decrease in 2016 full year net profit to Sh4.4 billion.
Management attributes the decline to a decrease in revenue in South Sudan operations as the effects of political unrest continue to negatively impact the South Sudan Economy.
Stanbic Bank Chief Executive Philip Odera told investors on Friday morning that increased regulation in the banking sector and a depressed stock market also impaired the group performance.
“A decrease in SBG Securities revenues in the current year following decreased activity in the Nairobi Securities Exchange affected the business. Growth in impairment charges due to increased general debt provisions aligned to challenging operating environment also affected our bottomline,” Odera said.
However, customer deposits grew by 12 per cent to Sh119 billion while the bank’s loan book went up by 19 per cent to Sh115 billion.
Total Assets hit Sh214 billion in the period under review.
Net interest income also increased year on year by 17 per cent to Sh10.8 billion boosted by a 10 per cent growth in customer loans and advances and improved margins within the first three quarters of the year.
Odera says even with the critical changes in the financial sector, that include proposed new capital requirements in the finance bill by the CBK Change in the US foreign Policy as well as Brexit, the sector is resilient enough to overcome.
