KENYA – Stanbic Bank Kenya, a financial service provider, has announced a reduced KSh1.5 billion (US$14.04m) profit for the period running January 1 to March 31 ,2020 (first quarter-Q1). 

The 35 percent slack in earnings from KSh2.3 billion (US$21.54m) over a similar period is largely attributable to falling income during the period as both interest and non-interest funded income heads eased. 

The bank’s non-interest funded income fell by 30.3 percent to KSh2.3 billion (US$21.54m) while interest earnings eased by 7.7 percent to KSh4.8 billion (US$44.94m) from KSh5.2 billion (US$48.69m) last year. 

The drop in both income heads saw the bank’s operating income shrink by 19.4 percent to Ksh.5.4 billion (US$50.56m) from KSh6.7 billion (US$62.73m). 

However, the bank marked an increase in both customer deposits and issued loans which rose to Ksh.202.7 billion (US$1.9bn) and Ksh.161.8 billion (US$1.51m), respectively. 

Stanbic Bank Chief Executive Officer Mudiwa termed the performance as resilient amidst the Covid-19 pandemic led shocks. “The first quarter has indeed put the economy in a difficult position with most sectors struggling to meet targets,” he said. 

During the period, the bank reported the restructuring of KSh13.2 billion (US$123.6m) in loans to individuals and small medium enterprises (SMEs) as part of the banking industry measures to support customers through the pandemic. 

Stanbic continued to extend support to women led enterprises through its program dubbed DADA, with new credit issues standing at KSh727 million (US$6.81m) in the period. 

The bank tabulates its support to Covid-19 containment initiatives at KSh137 million (US$1.28m) through its Stanbic Foundation. 

The lender’s resilient performance was however dented by a rise in asset quality deterioration as gross non-performing loans raced to KSh21.1 billion (US$197.57m) from KSh16.7 billion (US$158.37m). 

Stanbic Bank Kenya was the first bank to announce customer interventions geared at providing relief from the adverse Covid-19 impact.  

The bank provided loan moratoriums to both individuals and Small and Medium-Sized Enterprises (SMEs)that saw it restructure around KSh10.9 billion (US$102.06m) to individuals who had a one-month repayment holiday while KSh2.3 billion (US$221.54m) were SME loans which earned three-months long repayment holidays.