I have sold the news at KShs 110, for the following reasons:
1. I generally expect lower prices in the market in the coming days because of Coronavirus outbreak;
2. I made a capital gain of 12% (Not as much as I had liked but acceptable in view of dividends collected for the last 2 years or so);
3. Stanbic has struggled to keep up with its peers despite its large balance sheet. There are better prospects elsewhere. I am looking at I&M and NCBA at lower prices.

@VVS you are now the driver

My position in Stanbic is much smaller than I&M but the dividend yield is decent and growing.
On a relative basis I think I&M/NCBA offer more value.


From SIB

Stanbic Holdings kicked off the earnings season, reporting a marginal rise in EPS of 1.6%y/y to KES 16.14. The subdued growth was as a result of two major one-off costs of KES 1.5bn (bank guarantee) and KES 773m (Voluntary Early Retirement costs) incurred in the course of FY19. Increased impairment costs (+50.2%y/y) further dented the bottom-line as the lender increased its impairment charge on further distress on its loans and advances. Stanbic did get a shot in the arm in the form of a tax credit (KES 400m), as it recouped some of the amounts written off but not recovered.

On the positive side, the lender did increase its total DPS by 21.6% to KES 7.05, in what we interpret as a move to reward shareholders in an environment that doesn’t seem conducive in increasing risk weighted assets.
> The guarantee, a cost of doing business, may not recur but there are no guarantees!
The VERC should reduce costs going forward but unlikely to recur annually.
I am not sure what "a tax credit (KES 400m), as it recouped some of the amounts written off but not recovered" what this is but I hope there's more information in the Annual Report.

Stanbic bank kenya has restructured sh.1 billion car loans after the pandemic.
The restructured car loans make up 6.6% of the Stanbic 15.15 billion vehicle and asset financing loan book.