This archive report was first published on 28 November 2019.
Stanbic Bank has completed its voluntary early retirement program, which saw 88 staff members leave the institution in August. The program, aimed at reducing the bank's employee base, has resulted in layoff costs amounting to Ksh.773.2 million.
Despite the one-time layoff costs, the bank's earnings for the first nine months of the year have picked up by 8.5 percent, reaching Ksh.5.1 billion. Stanbic's net interest income also peaked at 13 percent, growing from Ksh.8.5 billion due to increased loan issuance and improved deposit mobilization.
The bank's financial position remains solid, with staff costs maintained at Ksh.4.3 billion, a marginal rise of 2.34 percent from the corresponding remuneration spend in 2018. However, the bank's asset quality has deteriorated, with net non-performing loans surging by 86 percent to Ksh.7.8 billion.
Stanbic has omitted the declaration of a dividend for the financial review period, despite its shareholders' earnings per share (EPS) surging to Ksh.29.93 from Ksh.27.75 in the last year.
Published on November 28, 2019, by Citizen TV.
