NAIROBI (Reuters) – Kenya’s Stanbic Holdings posted a 19% drop in its full-year pretax profit, as its interest income dropped and credit impairment costs rose. A woman walks near Stanbic Bank branch in Kenya’s capital Nairobi November 15, 2015. REUTERS/Noor Khamis Pretax profit came in at 6.23 billion shillings ($57 million) for 2020, compared with 7.71 billion shillings a year earlier, it said in a statement on Friday.
Stanbic Holdings, which is also present in South Sudan, said net interest income fell to 12.80 billion shillings from 13.35 billion shillings, while credit impairment charges rose to 4.88 billion shillings from 3.15 billion shillings.
Stanbic, which operates a bank, a securities brokerage and an insurance agency, did not give more explanation for its performance and is due to hold an investor briefing later in the day.
Kenyan lenders, like others in the region, were hit by the pandemic that led the central bank to allow them restructure their customers’ loans to offer them relief from disruptions caused by restrictions put in place to curb the spread of the novel coronavirus.
Stanbic said its total assets rose 8% to 328.59 billion shillings while earnings per share fell to 13.13 shillings from 16.14 shillings.
It recommended a final dividend payment of 3.80 shillings a share, down from 7.05 shillings a year earlier.
Stanbic Holdings’ shares on the Nairobi Securities Exchange closed 2020 down 29% at 85 shillings.
The stock closed at 83.00 shillings on Thursday from 83.75 shillings a day earlier and has lost 2.35% since the start of 2021.
($1=109.5500 Kenyan shillings)