Stanbic Bank Kenya’s Net earnings for Q1 2022 increased to KSh 2.1 billion compared to KSh1.8 billion over the same period in 2021, a growth of 15.7%.
The listed lender’s net loans and advances grew by 30.8 per cent, while Gross earnings grew to KSh2.92 billion compared to KSh2.57 billion in Q1 2021. Stanbic Bank Kenya’s provisions for bad loans declined by 19.4%, from KSh 609.5 Million to KSh491.3 Million during the period under review.
Its balance sheet size grew to KSh 331.03 billion, up from KSh317 billion in the first quarter of 2021.
The lender’s profitability is partly attributed to higher revenue in the period and a drop in loan loss provisioning. Its total operating income grew by 13.3 per cent to KSh6.8 billion from KSh6 billion on the backdrop of a 15.6 per cent growth in net interest income at KSh3.7 billion.
Non-interest funded income grew by 7.1 per cent to KSh3 billion from KSh2.8 billion in the same period. Non-interest related costs have grown below income at 11.8 per cent to KSh3.8 billion from KSh3.4 billion.
Stanbic Bank Kenya cuts provisions for bad loans as it recovers from pandemic effects
Stanbic Bank Kenya cut its provisions for bad loans by 19.4 per cent from kSh609.5 million in Q1 2021 to KSh491.3 million in Q1 2022. The lender’s gross non-performing loans declined to KSh 24.6 billion in Q1 2022 from KSh 26.4 billion in Q1 2021.
The loan book grew by 30.8 per cent to KSh206.5 billion from KSh157.9 billion in Q1 2021. Customer deposits grew by 3.8 per cent to KSh235.1 billion from KSh226.6 billion in Q1 2021.
The Bank’s Earnings per Share (EPS), which measures profitability, improved to Sh 12.37 from Sh 11.04. Stanbic Bank Kenya Limited is part of the South African based Standard Bank Group- a leading African financial services organization with a presence in 20 African countries and across the globe.
Stanbic Bank Kenya Limited- part of Stanbic Holdings Plc, is listed on the Nairobi Securities Exchange (NSE).
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