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Stanbic Posts an 18.7pc Decline on its Profit to Sh5.2bn in FY2020

NAIROBI, Kenya, Mar 5- Stanbic Holdings has posted an 18.7 percent decline in its profit for the financial year ended 31st December 2020 to Sh5.2 billion, on the back of lower operating income.

According to the company, the results reflect the harsh operating environment for the NSE listed firm which had recorded Sh6.4 billion profit in the previous financial year.

During the period under review, the group saw its revenues drop to Sh23.2 billion compared to Sh24.8 billion it registered in the previous financial year.

Total operating expenses fell to Sh12.1 billion from Sh13.9 billion on the back of cost containment measures.

Stanbic’s net interest income was down to Sh12.8 billion from Sh13.3billion in 2019.

Non-interest income, which comes from fees and commissions, dropped to Sh10.4 billion.

The bank also revealed that it  restructured loans worth Sh40 billion between March and June 2020, to cushion its customers against the adverse effects of the coronavirus pandemic.

“Our loan restructures now stand at Sh40 billion with the majority of relief going to personal loans,” said Stanbic Chief Executive Officer Charles Mudiwa.

“Together with our partners, we collaboratively spent over Sh147million in various Covid-19 relief interventions,” he added.

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The brokerage arm SBG Securities reported a harsh decline in its profit after tax at Sh34.9 million from Sh122 million in 2019.

Stanbic has nevertheless defied the declining earnings to declare a Sh.3.80 final dividend from Sh7.05 at the end of 2019.

Subject to shareholders’ approval, the final dividend will be payable to members of the company registered on the share register of the company on the closure date of May 21, 2021.

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