Stanbic Holdings Plc has unveiled its financial results for the half-year ending June 30, 2024, showcasing a KES 7.2 billion profit after tax. This represents a 2% year-on-year increase, reflecting the group’s ability to navigate a complex economic environment with strategic agility.
Chief Executive Joshua Oigara highlighted the bank’s resilience, citing improvements in net interest income and a robust 30% balance sheet growth, which surged from KES 384 billion to KES 498 billion. This growth facilitated the declaration of an interim dividend of KES 1.84 per share.
“Despite a broadly positive economic outlook in Kenya and the region, the first half of 2024 presented a mixed economic landscape,” Oigara noted. “The appreciation of the Kenya Shilling against the Dollar provided some stability, yet severe floods from March to May and subsequent civil protests posed significant challenges. Nonetheless, our strategic focus and execution have helped us deliver positive results in both Kenya and South Sudan.”
Financial Highlights:
- Net Interest Income: Rose by 4% to KES 12.6 billion, driven by a larger lending book and higher asset yields.
- Operating Costs: Decreased by 7%, reflecting the base effect of previous investments in client experience and foreign exchange gains from the Shilling’s appreciation.
- Costs-to-Income Ratio: Improved to 40.4%, demonstrating effective cost management.
- Customer Deposits: Increased by 39% to KES 360 billion, underscoring growing client trust and engagement.
- Non-Performing Loan (NPL) Ratio: Closed at 9.4%, with a strong commitment to enhancing asset quality.
- Credit Impairment Charges: Declined by 22%, thanks to better portfolio quality, improved collateral values, and refined risk management.
- Return on Equity (ROE): Improved to 21%, up from 20.5%, signaling a continued focus on shareholder returns.
Chief Financial and Value Officer Dennis Musau commended the bank’s performance. “Our results reflect our dedication to supporting customers through a challenging landscape while managing risk prudently. The significant growth in our balance sheet and customer deposits highlights the trust placed in us and validates our investments in customer experience.”
Strategic Initiatives and Social Impact: Stanbic Kenya Foundation continued its impactful work in education, healthcare, and sustainable development. The foundation’s notable partnership with the United States African Development Foundation (USADF), GIZ, and the Bill and Melinda Gates Foundation has facilitated several initiatives, including the ‘Future Ni Digital Skills’ programme. This initiative, launched in January 2024 in collaboration with American Towers Company and Microsoft Corporation, aims to enhance digital literacy among Kenyan youth and communities.
Additionally, Stanbic’s support for Small and Medium Enterprises (SMEs) through collaborations with GIZ and USADF has yielded substantial outcomes, including concessional loans amounting to KES 119 million. The bank’s DADA initiative has empowered over 50,000 SMEs, boosting incomes, job creation, and market access.
In a significant move, Stanbic Bank facilitated the Eurobond refinancing program, contributing to fiscal stability. The bank also partnered with NBA Africa and the Luol Deng Foundation to build a FIBA-standard basketball court in Juba, South Sudan, supporting the development of local youth talent.
As Stanbic Holdings Plc navigates the evolving economic landscape, its financial results and strategic initiatives underscore a commitment to growth, resilience, and community impact, paving the way for continued success and positive social change.
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