Stanbic Holdings Plc net profit for the year that ended on December 31, 2020 dropped by 19% to KSh5.2 billion from KSh6.4 billion at the end of 2019. The firm’s total income, comprised of interest and non-interest income, decreased by KSh1.5 billion at the end of 2020, to KSh23.2 billion from KSh24.8 billion in the same period in 2019.
Even with the decline in the lender’s net profit, Stanbic’s directors’ compensation went up to KSh58.7 million from KSh51.5 million a year earlier, a 14% increase.
Stanbic’s provisions for bad loans increased sharply in 2020 to KSh4.9 billion compared to KSh3.2 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 KSh12.1 billion from KSh13.9 billion in 2019.
Stanbic Holding’s customer deposits grew by 16% to KSh260 billion in the 12 months to December 2020, from KSh225 billion at the end of 2019. Similarly, its loan book expanded to KSh196.3 billion from KSh191.2 billion a year ago, a 3% improvement.
The bank’s board of directors have recommended a final dividend of KSh3.80 per share, which is 46% lower than the KSh7.05 per share final dividend paid out last year.