Stanbic Bank Kenya released their half year results yesterday in which they reported a 34% dip in their pretax profit to Ksh. 2.2 Billion down from Ksh. 3.4 Billion during a similar period in 2016.

The period saw a 10% decline in interest income to Ksh.7.8 Billion down from Ksh. 8.8 Billion in 2016. Non-interest income on the other hand rose by 11% to Ksh. 4 Billion. Total operating income rose marginally to Ksh. 9 Billion up from Ksh. 8.9 Billion in 2016. The decline in interest income can be explained by the fact that banks have generally reduced their lending due to the interest rate cap law.

An increase in the non performing loans from Ksh. 5.9 Billion in 2016 to Ksh. 6.4 Billion saw a 113% increase in the loan loss provision to Ksh. 1.8 Billion. This ultimately led to a 22% rise in the total operating expenses to Ksh. 6.7 Billion. This increase in the NPL’s is a clear indication of the tough economic times that the country is undergoing with many not able to repay their loans.

The bank maintained a core capital ratio of 20.8 and a liquidity ratio of 52.6 leaving it at a good position the storm.