Stanbic net profit rises 14.38pc to Sh4bn, targets 255 staff for retrenchment

Stanbic Holdings Thursday announced it had posted a 14.38 percent jump in net profit in the half year ended June, boosted by higher interest and non-interest income.

The lender made a net profit of Sh4 billion in the period, compared to Sh3.5 billion in the same period last year.

Net interest income jumped 19.51 per cent to Sh6.7 billion as non-interest income mainly from fees and commissions rose 10.15 percent to Sh6.1 billion.

The lender’s board has proposed an interim dividend of Sh1.25 per share. Shareholders of Stanbic Holdings will receive Sh1.25 dividends per share.

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.

he 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.

The announcement comes hot on the heels of a leaked memo Wednesday indicating that the bank was planning to lay off up to 255 of its staff with the company having already offered permanent and pensionable employees a voluntary early retirement package which they are at liberty to accept or decline.

According to Kenya’s Capital FM, the bank’s employees have until Friday to give feedback on the early retirement offer. Stanbic Bank is the latest Kenyan bank to announce retrenchments, following in the 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 staff.