Stanbic Bank Kenya has announced a Kshs 3.6 billion after-tax profit for the period ended 30 September 2020 as compared to the after tax profit of Ksh. 5.1 Billion in a similar period last year.

The 29% drop in profitability was on the back of the bank raising its loan loss provisions by 76% due to the effect of Covid-19 on the economy. With the Central Bank Reference Rate (CBR) dropping by 100 bps in 2020, Stanbic reduced the interest charged on existing loans, this led to a 6.9% drop in net interest income compared to Q3 2019. The waiver of costs on selected mobile transactions led to a 31.4% drop in mobile transaction fees and commissions line.

At the same time, the bank also benefited from deliberate actions taken to improve its operational efficiency resulting in a 23% drop in operating expenses from Kshs 9.99 billion to Kshs 7.74 billion, a year on year comparison. The banks, Capital and liquidity ratios remain robust and have improved year on year.

During the pandemic, has rolled out various social initiatives worth approximately Ksh 160 million. In collaboration with other corporate partners and dedicated staff, the bank donated 192 Oxygen Therapy Devices, Personal Protective Equipment (PPEs), 700 handwashing stations and foodstuffs in support of frontline health workers in Kenya and the communities in which the bank operates.

The bank has also invested in Small and Medium Enterprise (SME) capacity building sessions which include survival boot camp sessions and digital marketing skills that will better enable its clients to weather the socio-economic storm that the pandemic has brought forth. So far, five hundred (500) SMEs have benefited from the programs and an additional five hundred (500) have been equipped with essential digital marketing skills.

Stanbic Bank Chief Executive Charles Mudiwa, had this to say, “Our financial results in the first three quarters have been impacted by the COVID-19. As a Kenyan bank, keen on shared value, our first priority was our customers and employees who have continuously needed our support during the pandemic. As our clients begin to chase a rebound strategy in recovering economy, we are confident that with our strong capital-liquidity ratios, we are well-positioned to support them find innovative ways to make their dreams possible.”