Africa-Press – Kenya. Stanbic Holdings has reported a Sh3.5 billion after-tax profit for the first half of the year 2021, even as the pandemic continues to affect key sectors including banking.
This is a 34.6 per cent increase when compared to the Sh2.6 billion profit reported in a similar period last year, when Covid-19 impact to businesses was high.
During the period under review, the listed lender slowed down on lending as it loan book closed at Sh207.6, which is 11.7 per cent down compared to Sh235.1 billion last year.
Deposits from customers and banks equally dropped to Sh259.9 billion from Sh 287 billion last year.
Mamanegement howevver says the bank’s performance demonstrates solid business momentum and optimism of the various interventions put in place to enable the institution sail through the different phases and related effects of the pandemic.
Stanbic was the first bank in Kenya to issue loan moratoriums for individuals, SMEs and corporates to cushion them from the effects of the pandemic.
During the the first half of this year, it rolled out a number of drives to improve services.
They include flexibility to buy motor insurance in less than 10 minutes through the Stansure app and real-time access to foreign exchange rates on mobile and digital lending on mobile apps , which are also expected to contribute to the bottom line in the second half of this year.
Speaking on the growth strategy, Stanbic Bank Kenya CEO Charles Mudiwa said: “We started the year by repositioning our brand through a message of hope dubbed, ‘It Can be’. This message speaks to the commitment and support that drive us to deliver on our promise.”
He added:” We have realigned our strategy to focus more on our customer needs through our client-centricity value proposition and providing innovative solutions that are empowering and blend in with their lifestyle.”
Chief Finance Officer Abraham Ongenge noted the bank’s profit after tax was supported by double digit revenue growth and improved credit losses.
Net interest income grew to Sh6.9 bilion from Sh6.3 billion, a time when interest rates have relatively been muted with the benchmark rate maintained at seven per cent since April last year, having been brought down from 7.25 per cent in March.
Meanwhile, Stanbic has initiated partnership agreements centered around supporting businesses .
It has partnered with Microsoft Kenya and the Ministry of Trade and Industrialization through the Stanbic Kenya Foundation to support Micro, Small, and Medium Enterprises (MSMEs) by building their capacity and equipping them with digital skills.
This is through the FutureNiDigital campaign. The lender has also partnered with United States African Development Foundation (USADF) to provide grants to MSMEs, cooperatives, and producer groups in Kenya.
The bank continues to champion women entrepreneurs through the DADA proposition and support them in their financial and non-financial endeavors, management says.
This year, the bank celebrated the second DADA anniversary having signed up a total of 12,000 women and have further trained over 6,500 individuals and business owners on business best practices.
The bank is also keen on sustainability and has invested in green financing. When the first green bond was issued in Kenya in 2019 through Acorn, the bank was instrumental in facilitating the deal.
“The group will continue to build its client-centricity strategy to ensure resilience, growth, and be a differentiator in order to remain competitive in this dynamic operating environment,” Mudiwa said.
