Stanbic Bank’s unaudited first quarter results show a 19 per cent improvement in net profit from KSh1.93 billion posted in the first quarter of 2018 to KSh2.3 billion in 2019. Improved earnings from non-interest sources such as fees and commissions and income from Foreign Exchange trading led to increased net profit for the tier two lender. The bank’s non-interest revenue grew by 18 per cent from KSh2.8 billion posted in Q1 2018 to KSh3.3 billion in Q1 2019.
Stanbic’s total operating income in the first three months of 2019 jumped up 18.5 per cent to KSh6.7 billion compared to KSh5.7 billion posted in the same period in 2018. Its total operating costs also went up by 16 per cent to KSh5.2 billion primarily driven by a sharp increase in the amount of loan loss provisions.
The bank’s loan book improved by 13 per cent from KSh128.5 billion recorded in the first quarter of 2018 to KSh144.7 billion in 2019. However, the size of loans and advances to customers slightly declined by 1.3 per cent between the last quarter of 2018 and the first quarter of 2019.
Stanbic’s assets grew by 14 per cent year on year to reach KSh285 billion. The assets growth was supported by increased investment in government securities, properties and equipment, and more loans and advances to customers.
