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Zachary Ochuodho @zachuodho

Growth in customer loans and deposits has been cited for Stanbic Holding’s 10.5 per cent rise in after-tax profit of Sh6.3 billion in 2019 compared to Sh5.7 billion reported in 2018.

According to the financial report, the group’s revenue grew by 12 per cent to Sh24.8 billion last year compared to Sh22.1 billion in 2018.

Customer loans and advances also grew by four per cent year on year to stand as Sh152.8 billion.

The revenue growth was partly offset by an increase in cost arising from reorganising the businesses and a one-off guarantee payment.

Stanbic Holdings chief executive Charles Mudiwa said growth in personal and business banking, increase in market share in the brokerage business, rise in transactional fees and successful closure of a key deal in investment banking contributed to the overall growth in profits.

Improved margins

Speaking yesterday during an investors briefing, Mudiwa said improved margins within personal and businesses banking and decline in the cost of funds contributed to a 10 per cent increase in net interest income.

He said the strong performance in non-interest revenue was a result of successful closure of key deals in investment banking, continuous strategic focus on leveraging digital platforms innovatively to deliver financial solutions to different customer segments and improved trading revenue.

Mudiwa said the bank’s strategic focus is to leverage innovative digital technology to deliver solutions that are attuned to customers’ dynamic financial needs.

“We also continue to actively seek opportunities to partner with businesses and individuals to unlock their potential and contribution to the economy.

This is inspired by our belief and commitment to this market, which has been our home for more than 100 years and whose growth we are committed to drive,” said Mudiwa

SBG Securities registered a 58 per cent rise in profit after tax to stand at Sh122 million in 2019 from Sh77 billion the previous year.

Customer service

Mudiwa said the group is keen to deepen client relationship and improve customer service while at the same time sharpening operational efficiency. 

“We hope to build on this in 2020 to continuously deliver better returns to our shareholders, unmatched service to our clientele and ultimately to move the Kenyan economy,” he said.

Stanbic  have recommended a final dividend of Sh5.8  having paid an interim dividend of Sh1.25 for each ordinary share.

Once approved the final dividend will be payable to shareholders by  May 18, 2020.