Stanbic Holdings Plc, a member of the Standard Bank Group and a listed financial services provider, has announced its financial results for the year ending December 31, 2022. The firm reported an impressive KES 9.1 billion after-tax profit, marking a 26% growth from the previous year. This growth has been attributed to the strong revenue and balance sheet growth, which is a result of the strategic plan formulated and adopted three years ago by the company.
According to Stanbic Kenya and South Sudan’s Chief Executive, Joshua Oigara, the company’s strategic plan was founded on digital innovations for service delivery, enhanced consumer experience, and increased operating efficiencies, which have translated into accelerated growth in the balance sheet. Oigara also noted that despite the uncertain and challenging operating environment last year, the business delivered strong results, thanks to focused execution across their strategic plan.
The company’s diversified portfolio of corporate, commercial, investment, and retail banking financial solutions led to a 28% revenue growth to close at KES 32 billion in the period under review. Customer deposits also increased by 12% to stand at KES 272 billion, while loan and advances to customers were up 27% to close at KES 236 billion, highlighting the Bank’s commitment to supporting economic growth and development.
Subject to approval at the next Annual General Meeting, shareholders at the Nairobi Securities Exchange (NSE) listed firm will enjoy KES 4.98 billion in dividends, being 55% of the 2022 profit after tax, and representing a 40% increase in total dividend payment from the previous year’s KES 3.56 billion.
The significant progress on its strategic plan and requisite measures made by the Bank over time have cumulatively contributed to its strong growth momentum. Stanbic Holdings Chief Financial and Value Officer, Dennis Musau, noted that the company has made investments to drive faster customer acquisition, efficient and convenient service, and internal operational efficiency. The outcome of these efforts is evident in their cost-to-income ratio, which reduced from 50.9% in 2021 to 46.7% in 2022, boosting their Return on Equity to 15.3%, up from 13.3% in 2021.
Stanbic has been intentional in its focus on diversity and inclusion, with a specific focus on women. Through the Dare to Aspire Dare to Achieve (DADA) platform, the Bank has committed KES 20 billion (approximately USD 185 million) to finance women. Since its launch three years ago, the platform has attracted more than 53,000 new to bank ‘Dadas’ and disbursed loans amounting to KES 7.7B.
The Bank has consistently funded Micro, Small, and Medium Enterprises (MSMEs). As at the end of December 2022, the Bank issued a cumulative of KES 33 billion to these entities under its Business and Commercial Banking business segment. In addition, through the Stanbic Foundation and strategic partners, the Bank disbursed KES 76 million in grants and catalytic funding to over 400 MSMEs in the country.
Furthermore, Stanbic has been recognized for its contribution to society through various awards, such as Kenya’s Best Investment Bank, Best Trade Finance Bank, KEPSA Gender Mainstreaming Award, Financial Leadership Award Winner, and Overall winner of the Financial Reporting Awards.
The company’s commitment to the prosperity of the communities it serves is evident through its Social, Economic, and Environment (SEE) initiatives aligned with the United Nations Sustainable Development Goals (UNSDGs). The Stanbic Kenya Foundation champions the SEE initiatives, which focus on economic empowerment, financial inclusion, promotion of education, and health. The Foundation’s Accelerate Program has been