Stanbic Holdings Plc has announced a KES 12.2 billion profit after tax and a total dividend payout equivalent to 50% of its earnings for the financial year ended December 31, 2023.
The financial services provider with operations in Kenya and South Sudan attributed the 34% year-on-year growth to improved net interest margins, balance sheet growth, and strong trading revenue.
Stanbic Bank Kenya and South Sudan Chief Executive Joshua Oigara said the results reflected the Bank’s resilience in a tough operating environment.
“Despite facing a challenging business environment marked by heightened currency and inflationary pressure, rising interest rates and geopolitical tensions, the Group delivered strong financial results. This demonstrates resilience in our business model underpinned by diligent strategy execution. We remain committed to our purpose of driving Kenya and South Sudan’s growth, more so as we transition to our new 3-year strategy,” said Dr. Oigara.
The Nairobi Securities Exchange-listed lender saw its net interest income grow by 35% to KES 25.6 billion, driven by healthy balance sheet growth and expansion in margins on its interest-earning assets. Customer deposits rose by 18% to KES 321 billion, while loans and advances increased by 10% to KES 261 billion, underscoring the Bank’s commitment to growing its customer franchise.
Non-interest income was buoyed by foreign exchange revenue, driven by increased volumes and better margins. Additionally, investment banking fees and mobile money fees played a significant role.
In the period under review, the costs-to-income ratio stood at 43.5%, down from 46.7% in the previous year, evidencing the continued focus on efficiency in the business. The Group reported positive JAWS of 8.6%, while return on equity (ROE) improved to 18.6%, up from 15.3% in the previous year.
The Bank’s Chief Financial and Value Officer Mr. Dennis Musau noted that the Bank’s previous three-year strategy delivered the envisioned goal of a sustainable growth trajectory with all the key metrics depicting better returns.
“Today’s results are demonstrable proof that our three-year strategy yielded a positive and sustainable growth trajectory delivering 39%, 26% and 34% growth in profitability in 2021, 2022 and 2023 respectively. Our deliberate focus on transforming client experience, institutionalising operating efficiencies and focus on sustaining our returns are the underlying pillars to these outcomes,” he said.
