Stanbic Bank has posted a 45.5 per cent jump in net profit to Sh6.27 billion in the full year to December 2018, from Sh4.3 billion in 2017 through what it termed prudent lending.
Loans to customers jumped from Sh130.5 billion to Sh146.6 billion in the year, helping the lender secure an interest income of Sh18.8 billion.
The bank also locked its money in Government securities, re-balancing its portfolio by reducing traded assets while increasing amounts held to maturity.
Government paper held to maturity increased from Sh4.6 billion in 2017 to Sh22.4 billion last year while securities available for sale declined from Sh40.9 billion to Sh17.8 billion.
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Stanbic increased its cash held at Central Bank of Kenya from Sh6.4 billion to Sh20 billion and cash held in banking institutions in the group from Sh4.4 billion to Sh20.9 billion.
The banking sector seems to be the only one untouched by a raw economy which has now seen Unga Group join eight other firms in issuing profit warnings.
Crown Paints, UAP, Britam, Sameer Africa, Kenya Power, Bamburi Cement, Mumias Sugar and Sanlam have all given warnings of a drop in profit.
Unga issued a profit warning as revenues plummeted following a swing back from the profits made in 2017 over drought and subsidies.
The listed miller reported Sh306 million in profits for the six months to December, an 18 per cent slide from Sh511 million in 2017.
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Company Secretary Winniefred Jumba said they expect depressed demand that may see profits decline by more than 25 per cent.
“With the prevailing depressed demand for flour, the second half of the year ending June 2019 will continue to be challenging,” she said.
“Based on the company’s unaudited financial results for the first six months and the company’s second half forecast, profit for the year is likely to be at least 25 per cent lower than the previous year.”
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