Stanbic Bank along Kimathi Street on December 13, 2014. FILE PHOTO | NMG
Summary
- Jump in earnings helped by absence of Sh1.2 billion hit the bank took last year due to devaluation of currency in South Sudan.
- Stanbic said profit before taxation dropped to Sh4.38 billion from Sh5.3 billion, a 17.36 per cent decline.
- Stanbic joins KCB as only top-tier lender to have grown its bottom-line during the period.
Stanbic Bank Kenya has posted the largest
growth in net profit among tier-one lenders for the nine months to
September helped by the absence of an exceptional item last year related
to its South Sudan operations.
Its after-tax profit rose by 19.71 per cent to hit Sh3.23 billion, the bank said in a statement Friday.
The
jump in earnings was buoyed by the absence of a Sh1.2 billion hit the
bank took in 2016 due to devaluation of currency in South Sudan
resulting from hyper-inflation.
Without the one-off readjustment, the bank’s profit would have dropped by about Sh1 billion.
Stanbic said profit before taxation dropped to Sh4.38 billion from Sh5.3 billion, a 17.36 per cent decline.
Bad debt
The
earnings were hurt by provisions against bad debt which almost doubled
by Sh2.27 billion. The lender’s total non-performing loans rose to
Sh7.91 billion in September from Sh5.16 billion in the same period last
year.
Its loan book expanded by Sh5.76 billion to stand Sh121.35 billion from Sh115.59 billion in 2016.
Stanbic joins KCB Group
,
which reported a 5.03 per cent rise in net profit to Sh15.1 billion, as
the only top-tier lender to have grown its bottom-line in the period
under review.
Standard Chartered
, Barclays , Co-operative Bank , Diamond Trust and Equity Bank
have reported a 39, 12, 9.5, 3.7 and 3 per cent drop in net profit in the nine-month period.
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