Stanbic Holdings Plc has announced a staggering 34% rise in net profit to KES 12.2 billion for the 2023 financial year.
The impressive results, revealed on Wednesday, were fueled by improved interest margins, balance sheet growth, and robust trading revenue.
The Nairobi Securities Exchange-listed lender will pay out dividends equivalent to 50% of its earnings to shareholders. This strong performance cements Stanbic’s resilience amidst economic headwinds including heightened currency volatility, inflationary pressures, rising interest rates, and geopolitical tensions.
“Despite facing a challenging business environment…the Group delivered strong financial results. This demonstrates resilience in our business model underpinned by diligent execution of our strategy,” said Dr. Joshua Oigara, Stanbic Bank Kenya and South Sudan Chief Executive.
The bank’s net interest income surged 35% to KES 25.6 billion, buoyed by an 18% increase in customer deposits to KES 321 billion and a 10% rise in loans and advances to KES 261 billion.
“Today’s results are demonstrable proof that our three-year strategy yielded a positive and sustainable growth trajectory,” remarked Dennis Musau, Chief Financial and Value Officer. He highlighted improvements in profitability, efficiency, and returns on equity.
Unveiling its new three-year corporate strategy, Stanbic aims to capitalize on this momentum by transforming client experiences, operational excellence, and sustainable growth. It will strategically position itself as a major market player through high-impact initiatives.
The group also reaffirmed its commitment to sustainability. “Stanbic Bank embeds social, economic, and environmental considerations into its lending decisions and business practices to advance sustainability and value for society,” a statement said. Notable sustainable financing included participating in a 15 billion shilling sustainability-linked loan facility.
