Stanbic Bank has announced a KES 10.1 billion profit after tax for the nine month period ended September 30, 2024. The Bank with operations in Kenya and South Sudan, attributed the 9% year on year growth in profitability to improved net interest income driven by 12% balance sheet growth to Kes 463 billion.
Stanbic Bank Kenya and South Sudan Chief Executive, Dr Joshua Oigara, reiterated that the Bank’s new three-year strategy continues to be a strong anchor amidst a challenging operating environment.
“We are navigating a challenging macroeconomic environment characterized by slower economic growth in the second half of 2024 amid easing inflation. These complexities have undoubtedly posed significant pressures on the financial sector, from deceleration in credit to the private sector to constrained consumer spending. However, our Bank demonstrated remarkable resilience in the first nine months of the year by registering growth both in our Kenya and South Sudan operations. Our diversified portfolio, and commitment to targeted solutions enabled us to deliver sustained value for our clients, partners and shareholders.” said Dr Oigara.
The Bank’s Chief Financial and Value Officer Mr. Dennis Musau noted that the Bank’s investments in people, technology and tailored product offerings have yielded operational efficiency and customer centricity.
“Our results reflect the Bank’s balanced approach to navigating a dynamic operating environment. Strategic management of the balance sheet mix has enabled us to cushion against macroeconomic shifts while positioning the Bank for sustainable growth amidst shifting macroeconomic factors. ” Noted Mr. Musau.
Select performance highlights:
• Net interest income grew by 5% to Kes18.9 billion on the back of growth in the average lending book and higher assets yield.
• Non-interest income reduced by 18% on account of significant non-repeated transactions in the 2023 base as well as contraction of trading margins, alleviated by increased client activity.
• Operating costs decreased by 5% on harnessing previous investments aimed at improving client experience and foreign exchange gains from the appreciation of the Kenya Shilling.
• Credit Impairment charges decreased by 40% to 2.7 billion attributable to judicious credit risk management, improved recoveries and impact of the Kenya shilling appreciation in early 2024.
• Customer deposits rose by 7% to Kes 328 billion as the Bank judiciously balanced funding requirements and balance sheet yield optimisation.
The period under review saw the Bank achieve several milestones including the launch of an asset management business through its Insurance and Asset Management Unit, which is strategically positioned to deliver investment solutions that drive growth for both retail and institutional investors.
Fitch’s recent upgrade of Stanbic’s ratings to ‘B’ with a stable outlook underscores the Bank’s financial strength, resilience, and prudent management practices amidst a dynamic economic environment. This milestone reinforces confidence among customers and stakeholders, affirming Stanbic’s ability to deliver consistent value and reliable Banking solutions.
The Bank received several accolades during the financial period, underscoring its leadership in financial services. Stanbic Bank won two Euromoney awards for the best FX (forex) and best investment Bank in Kenya showcasing its expertise in foreign exchange services, its innovative capital raising solutions and excellence in investment Banking respectively. Additionally, the Bank was named Best Trade Finance Bank in Kenya 2024 by Global Trade Review, demonstrating Stanbic’s strength in facilitating seamless trade finance solutions for businesses.
Through the Stanbic Kenya Foundation, the Bank ramped up its commitment to driving socio-economic impact running several programs including a digital upskilling program that empowers individuals across various counties in Kenya with future-ready skills. 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 also focused on empowering Small and Medium Enterprises (SMEs) in collaboration with USADF.