Photo/business dailySh1.8 billion is the bad debt that Stanbic Holdings (SCBK) has written off, a move that saw it earnings in the half year ended June drop 12.1 per cent.
A net profit of Sh1.7 billion was reported by the parent of Stanbic Bank in the review period compared to Sh1.9 billion a year earlier.The performance was largely the result of credit impairment charges which more than doubled to Sh1.8 billion from Sh834 million.Were it not for a lower effective tax rate its net earnings would have been lower which saw it pay the taxman Sh470.6 million in the review period compared to Sh1.2 billion the year before.Stanbic declared an interim dividend of Sh1.25 per share, cutting it from Sh1.77 per share paid in the prior year.The new dividend will be paid on September 29 to shareholders on record as of September 11.The company’s net interest income dropped 8.2 per cent to Sh5 billion despite the loan book expanding eight per cent to Sh133.5 billion, indicating the impact of narrower margins brought by interest rate controls.Stanbic increased its purchase of securities including government debt 21.1 per cent to Sh68.5 billion.