Stanbic Holdings Plc net profit for the year that ended on December 31, 2020, dropped by 19% to Kes 5.2 billion from Kes 6.4 billion at the end of 2019.
The firm’s total income, comprised of interest and non-interest income, decreased by Kes1.5 billion at the end of 2020, to Kes 23.2 billion from Kes 24.8 billion in the same period in 2019.
Even with the decline in the lender’s net profit, Stanbic’s directors’ compensation went up to Kes 58.7 million from Kes 51.5 million a year earlier, a 14% increase.
Stanbic’s provisions for bad loans increased sharply in 2020 to Kes 4.9 billion compared to Kes 3.2 billion a year ago as borrowers struggled to service their loans.
The tier-one lender managed to bring down its operating expenses by 13% to Kes12.1 billion from Kes13.9 billion in 2019.
Stanbic Holding’s customer deposits grew by 16% to Kes 260 billion in the 12 months to December 2020, from Kes 225 billion at the end of 2019. Similarly, its loan book expanded to Kes196.3 billion from Kes 191.2 billion a year ago, a 3% improvement.
The bank’s board of directors have recommended a final dividend of Kes 3.80 per share, which is 46% lower than the Kes 7.05 per share final dividend paid out last year.
Read also: Stanbic Bank Posts 29.4 Percent Decline in Net Earnings for 3rd Quarter
Jackson Okoth of the kenyanwallstreet contributed to this post
