This archive report was first published on 9 August 2019.
Stanbic Bank of Kenya has posted a 14% net profit growth in the first half of 2019, with the lender's net profit reaching Sh4.1 billion compared to Sh3.6 billion in the same period last year.
The bank's improved earnings from lending activities helped offset a 5% increase in operating expenses, with income on interest reaching Sh6.7 billion between January and July 2019, up from Sh5.6 billion in the same period in 2018.
Stanbic's loan book grew by 19% to Sh161.9 billion, while customer deposits increased by 20% to Sh201.6 billion, compared to Sh136.5 billion and Sh167.3 billion respectively in the previous comparable period.
However, the bank's job cuts have raised concerns, with Stanbic planning to part ways with around 255 employees through a voluntary retirement package.
Stanbic Bank Kenya Chief Executive Charles Mudiwa said the voluntary early retirement was part of the bank's strategy to become more digital and reorganise its operations.
Stanbic joins a number of banks in the country that have been restructuring their operations in line with a changing economic landscape.
