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Stanbic Bank profits up 14 per cent in year ending June 30

During the reporting period, the group’s loan portfolio grew by 19 percent hitting Sh161.9 billion from Sh136.5 recorded in the period ending June 30, 2018/FILE – Stanbic Bank Kenya

NAIROBI, Kenya, Aug 8 – Stanbic Bank has reported a 14 percent jump in profit after tax in Half Year results for the year ending June 30, 2019, majorly driven by loans and deposits.

During the reporting period, the group’s loan portfolio grew by 19 percent hitting Sh161.9 billion from Sh136.5 recorded in the period ending June 30, 2018.

On the other end, the company’s customer deposits were up by 20 per cent closing at Sh201.6 billion from Sh167.3 billion in last year’s performance.

Chief Executive Officer Stanbic Bank Kenya, Charles Mudiwa, said the results was a clear demonstration of projected growth in future.

“The results are a reflection of the unstinting support we continue to get from our clients and partners, despite operating in what remains to be a challenging business environment,” said Mudiwa.

The lender’s net profit which involves Kenyan outlets, those in South Sudan, SBG Securities and Stanbic Insurance Agency Limited registered Sh41 billion profit compared to last year’s review where the organization registered Sh3.6 billion.

The performance was also supported by a strong showing from non-interest revenue.

The brokerage business – SBG Securities – reported Sh82 million in profit after tax, more than double the previous half year’s performance of Sh32 million.

Earnings Per Share (EPS) were reported at Sh10.28, having risen from the previous Sh8.99, denoting a rise in profitability.

Shareholders of Stanbic Holdings will receive Sh1.25 dividends per share.

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The announcement of the results came amid reports of the impending dismissal of 255 employees, a move aimed at reducing the company’s wage bill.

According to a memo seen by Capital Business, the company has offered permanent and pensionable employees a voluntary early retirement package which they are at liberty to accept or decline.

Sources at the company who requested anonymity said the employees have until Friday to give feedback on the early retirement offer.

“We have been given until Friday to make up our minds to sign up for the scheme but the majority of us are not pleased with this since we will still be jobless and some of us have been here for over 15 years,” she said adding that the bank had planned to fire all the 255 employees without offering any benefit plans.

Stanbic Bank is the latest Kenyan bank to announce retrenchments, following in the footsteps of National Bank which fired 112 employees in June.

In 2017, Absa Group which rebranded from Barclays Bank fired 323 employees while Family Bank fired 150 staffers.

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