This archive report was first published on 15 May 2020.
On May 15, 2020, Stanbic Bank became the first lender to release its Q1 2020 financial results, posting a net profit of KSh 1.5 billion.
The bank's net profit dropped significantly from KSh 2.3 billion booked in the first quarter of 2019, indicating tough times in the banking sector in Kenya.
According to the financial results, Stanbic's balance sheet increased from KSh 284.9 million to KSh 309.7 million at the close of the first three months of 2020.
However, interest on loans to customers declined from KSh 3.9 million to KSh 3.6 million, while earnings from Government paper fell to KSh 899.6 million from KSh 1.1 billion at the end of Q1 2019.
Customer deposits increased marginally from KSh 1.2 billion to KSh 1.3 billion, while fees and commissions on loans declined to KSh 88.8 million from KSh 96.6 million in the period under consideration.
The lender's portfolio of non-performing loans grew sharply from KSh 13.5 billion to KSh 16.3 billion, highlighting the need for lenders to restructure customer loans, as stated by the Central Bank Governor Dr. Patrick Njoroge in March.
