Stanbic Holdings Plc has announced a Ksh 7.2 billion profit after tax for the half year ended June 30, 2024.
The listed company with operations in Kenya and South Sudan, attributed the 2% year on year growth in profitability to improved net interest income and a 30% balance sheet growth from Kes 384 billion to Kes 498 billion. In addition, the Group declared an interim dividend of Kes 1.84 per share.
Stanbic Bank Kenya and South Sudan Chief Executive, Joshua Oigara, emphasized that the bank’s results highlight its continued resilience amid a challenging operating environment.
“Despite a broadly positive economic outlook in Kenya and the region, the first half of 2024 was a mixed economic landscape. The appreciation of the Kenya Shilling against the Dollar bolstered foreign exchange reserves and provided some economic stability. However, severe floods in between the months of March to May, caused extensive damage to infrastructure, agriculture, and homes, disrupting economic activities and necessitating substantial recovery efforts. Additionally, the latter part of the half was characterised by civil protests” said Oigara.
He added: “Notwithstanding the challenges, the Group delivered positive financial results in Kenya and South Sudan, demonstrating resilience anchored on diligent execution and devotion to our newly reimagined three-year growth strategy. We remain committed to delivering superior value to our clients, shareholders and partners, who are an important cog to our performance,” said the Chief Executive.
Other notable financial results highlights:
• Net interest income grew by 4% to Kes12.6 billion on the back of growth in the average lending book and higher assets yield.
• Operating costs decreased by 7% attributable to base effect of previous year investments aimed at improving client experience and foreign exchange gains from the appreciation of the Kenya Shilling.
• The costs-to-income ratio stood at 40.4% with a positive JAWS ratio, indicating an efficient cost management approach.
• Customer deposits rose by 39% to Kes 360 billion.
• NPL ratio closed the period at 9.4%, The Group is committed to improving asset quality.
• Credit impairment charges dropped by 22% attributable to improved portfolio quality, strengthened collateral values and enhanced risk management practises.
• Return on equity (ROE) improved to 21%, up from 20.5% signalling the commitment to delivering incremental returns for the shareholders.
The Bank’s Chief Financial and Value Officer Mr. Dennis Musau noted that the results demonstrated the Bank’s resolve to continuously support our customers navigate complex operating landscape while prudently managing risk.
“Our operating results indicate that we continue fostering economic growth, as evidenced by significant growth in the balance sheet driven by investments in key strategic sectors to catalyse sustainable economic development. The strong growth in customer deposits is a testament to the trust our clients have in us and validates our significant investments in enhancing the customer experience,” noted Mr. Musau.
During the review period, Stanbic Kenya Foundation, significantly enhanced its impact initiatives in education, healthcare, and sustainable development through partnerships with various organisations, including the United States African Development Foundation (USADF), GIZ, the Bill and Melinda Gates Foundation, American Towers Company, and Microsoft Corporation.
In January 2024, the Stanbic Kenya Foundation teamed up with American Towers Company and Microsoft Corporation to launch the ‘Future Ni Digital Skills’ programme in select Kenyan counties. This initiative aims to boost digital literacy among youth, women, and communities, targeting training up to 10,000 individuals, with at least 3,000 earning in-demand certificates. The programme also supports over 30 Technical and Vocational
Education and Training (TVET) centres, Vocational Training Centres (VTCs), and Community-Based organisations (CBOs).
The Foundation focused on empowering Small and Medium Enterprises (SMEs) through collaborations with GIZ and USADF. To date, the Group has provided tailored financial support and capacity-building resources, with a special focus on women, youth, and individuals with disabilities. Improved access to credit has helped many SMEs become bankable, addressing common challenges in securing formal financial services. Through funding and the Group’s DADA initiative, Stanbic has equipped over 50,000 SMEs with essential tools and
solutions, leading to increased household incomes, job creation, and enhanced market access. The Foundation has also issued concessional loans totalling KES 119 million.
At the Stanbic Bank Sustainability Report launch on July 22, 2024, the Group awarded fourteen winners from the 4th cohort of the USADF and Stanbic Kenya Foundation (SKF) Grant Fund, collectively receiving USD 700,000.
Through our lending program in H1 2024, the bank disbursed over KES 54 billion to various sectors of the economy, mainly agriculture, small and medium-sized enterprises (SMEs), and industrial establishments. This is aimed at expanding commerce, increasing employment opportunities, and uplifting livelihoods through property ownership. Additionally, we facilitated the Eurobond refinancing program, helping the government achieve a stable fiscal and macroeconomic environment.
Additionally, acknowledging the vital role of youth in Africa’s future, Stanbic Bank partnered with NBA Africa and the Luol Deng Foundation (LDL) to build a FIBA-standard outdoor basketball court in Juba. This facility will provide a safe space for thousands of boys and girls to play, fostering the next generation of South Sudanese basketball players.