Stanbic Bank Kenya announced a profit of Kes 1.5 billion for the first quarter of 2020. The earnings were a result of increased customer deposits and a growing loan book. This is despite total non-interest income decreasing to Kes 2.3 billion as a result of the declining global economic activity that has stifled growth.
Mr. Charles Mudiwa, Stanbic Bank Kenya’s Chief Executive said, “The first quarter has indeed put the economy in a difficult position with most sectors struggling to meet targets. Despite this challenge, we have been able to register profit and have registered an increase in total customer deposits that grew to Kes 203 billion from Kes 191 billion in quarter one of 2019.”
The bank’s loan book also saw an increase of 12% percent to Kes161 billion from 144.7 billion in the first quarter of 2019.
On the other hand, Stanbic Bank restructured Kes 2.3 billion of SME loans and saw SMEs get a three-month loan holiday. This was particularly impactful as SMEs have been hardest hit by the COVID-19 crisis putting a strain on their ability to meet basic functions such as salaries and utility bills.
Quarter one also saw Stanbic underline its commitment to develop and empower women-owned businesses through its DADA platform. The bank has given Kes 727 million to women-owned businesses. Maurice Matumo, Head of Personal and Business Banking noted that “Our commitment to women-owned businesses is set to increase as we are relaunching DADA to the market with a Kes20 billion fund to accelerate the growth of businesses owned by women.”
In a statement to media houses, Mr. Charles Mudiwa noted that “Investments under its COVID-19 combating strategy through the Stanbic Bank Foundation has now surpassed one hundred and thirty-seven million Kenya shillings (Kes. 137m) making it one of the boldest strategic investments in Kenya’s private sector.”