Stanbic Bank has registered a Ksh 3.5 billion after-tax profit for the first half of the year 2021, a 37% improvement from the previous year which is an impressive performance for the bank despite the continued challenging operating environment brought on by the ongoing COVID-19 pandemic.
The bank’s performance demonstrates solid business momentum and optimism of the various interventions put in place to enable the institution to sail through the different phases and related effects of the pandemic.
Looking at the institution’s strategy in the first half of the year, Stanbic rolled out various solutions that have improved client experience and expediency while driving scale in the main market segment. The solutions range from the flexibility to buy motor insurance in less than 10 minutes through the Stansure app, to real-time access to Foreign Exchange rates on mobile and digital lending on mobile apps which are also expected to contribute to the bottom line in the second half of this year.
Speaking to this strategy, Stanbic Bank Kenya Chief Executive, Mr. Charles Mudiwa said, “We started the year by repositioning our brand through a message of hope dubbed, ‘It Can be’. This message speaks to the commitment and support that drive us to deliver on our promise. We have realigned our strategy to focus more on our customer needs through our client-centricity value proposition and providing innovative solutions that are empowering and blend in with their lifestyle.”
The bank’s profit after tax was supported by double-digit revenue growth and improved credit losses. Net interest earnings grew by 9% on account of loan book growth and improved margins. The interest rates have relatively been muted with the benchmark rate maintained at 7% from last year.” He further noted that on a positive note, the inflation rate has remained within the government target range of between 2.5% and 7.5% despite an increase in fuel prices.
Stanbic Bank has also initiated several partnership agreements centered around the socio-economic development of the country amounting to Ksh 240 million. Remaining true to its purpose of driving Kenya’s economic growth, Stanbic partnered with Microsoft Kenya and the Ministry of Trade and Industrialization through the Stanbic Kenya Foundation to support Micro, Small, and Medium Enterprises (MSMEs) by building their capacity and equipping them with digital skills through the FutureNiDigital campaign. They have further partnered with United States African Development Foundation (USADF) to provide grants to MSMEs, cooperatives, and producer groups in Kenya.
Stanbic bank is also keen on sustainability and has invested in green financing. When the first green bond was issued in Kenya in 2019 through Acorn, the bank was instrumental in facilitating this monumental deal, making it the most impactful and sustainably led project finance deal in the nation’s history. This year, Stanbic and SBG Securities then became the lead arrangers and placing agents on the Acorn
The bank’s performance has also been recognized through significant milestones such as the Best Investment Awards. An award the bank has received for the third year by Euromoney Awards for Excellence 2021. This unique recognition honors Stanbic for its outstanding expertise in structuring and implementing complex transactions in the region including debt arranging, loan syndications, capital markets, and advisory service. In addition, the bank continues to provide insights and analysis to the public on the economic performance of the country through the Purchasing Managers Index (PMI) monthly report.
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