In the just released Q3’2024 financial results, Stanbic Bank recorded a 9.3% increase in Profit After Tax (PAT) to Kshs 10.1 bn, from Kshs 9.3 bn recorded in Q3’2023. Notably, Profit Before Tax increased by 8.4% to Kshs 14.1 bn from Kshs 13.0 bn in Q3’2023.
The performance was mainly driven by a 4.8% increase in Net-Interest Income to Kshs 19.0 bn in Q3’2024, from Kshs 18.1 bn recorded in Q3’2023, coupled with a 13.9% decrease in total operating expenses to Kshs 15.3 bn from Kshs 17.8 bn recorded in Q3’2023.
The decrease in total operating expenses was mainly due to the 40.2% decrease in loan loss provision to Kshs 2.7 bn, from Kshs 4.5 bn in Q3’2023, which outpaced the 4.1% increase in staff costs to Kshs 6.2 bn from Kshs 6.0 bn in Q3’2023. The decrease in provisioning indicates reduced credit risk expectation by the lender
The performance was however weighed down by a 17.8% decrease in Non-interest income to Kshs 10.4 bn in Q3’2024, from Kshs 12.6 bn in Q3’2023. The decrease in non-interest income was mainly on the back of a 15.0% decrease in income from forex trading to Kshs 6.2 bn, from Kshs 7.2 bn in Q3’2023, an indication of reduced trading margins following the strengthening of the Shilling.
The balance sheet recorded an expansion as total assets increased by 11.7% to Kshs 462.6 bn, from Kshs 414.3 bn in Q3’2023, mainly driven by a 65.7% increase in balances due from the group’s banking institutions to Kshs 104.0 bn, from Kshs 62.8 bn in Q3’2023, which outpaced the loan book contraction of 12.8% to Kshs 218.8 bn, from Kshs 251.0 bn in Q3’2023.
The contraction in the loan book indicates a cautious strategy by the lender following high default rates in the industry, with the bank recording a 47.4% increase in government securities investments to Kshs 54.6 bn, from Kshs 37.0 bn in Q3’2023. Notably, Stanbic Bank recorded an increase in its Non-Performing (NPL)Loans Ratio during the period to 10.4% from 9.0% in Q3’2023, recording gross NPLS of Kshs 24.8 bn, a slight increase from 24.0 bn in Q3’2023
Customer deposits rose by 7.3% to Kshs 327.8 bn, from Kshs 305.7 bn in Q3’2023
