Stanbic Holdings Plc has reported a 13% increase in Profit after Tax (PAT) to KES 13.7 billion for the financial year ended 31 December 2024. The growth comes despite a decline in total income, supported by lower operational costs and reduced credit impairment charges.
The Group recorded a 27% rise in interest income, climbing from KES 37.9 billion to KES 48.2 billion, attributed to a higher-yielding asset book and a well-positioned investment portfolio. However, this was offset by a significant 93% surge in interest expenses, leading to a 5% decline in net interest income. Non-interest revenue also dipped by 1.7%, impacted by tighter margins and the absence of a one-off significant transaction recorded in 2023. Nevertheless, higher trading and transactional volumes helped cushion the decline, resulting in an overall 3.8% drop in total income.
Despite the mixed revenue performance, key financial indicators remained strong. Earnings per share rose by 13%, while Return on Equity improved by 70 basis points, underlining the Group’s sustained profitability and commitment to delivering shareholder value. The balance sheet remained largely stable, reflecting a prudent approach to growth amid dynamic market conditions.
Strategic Investments and Innovation Drive Growth
Commenting on the results, Dr. Joshua Oigara, Chief Executive of Stanbic Bank Kenya and South Sudan, stated, “We had a robust performance in 2024, fuelled by our ongoing focus on platforms, solutions, and processes that drive business growth while maximizing value for our stakeholders. Our investments in technology, talent, and innovative business strategies have positioned us to deliver resilient earnings and create a positive impact across Kenya and South Sudan.”
During the reporting period, Stanbic upgraded its core banking system and enhanced its mobile banking platforms, improving client experience and competitiveness. Additionally, the Group expanded its service portfolio by launching an asset management business and revamping its Private Banking and SME offerings.
Dennis Musau, Chief Financial and Value Officer, emphasized the Group’s strategic approach to managing rising credit costs. “We deliberately shielded our customers from high credit costs by not passing the entire impact of rising funding costs to them. This helped grow our average lending while keeping credit defaults and impairments below industry levels. Our focus on operational efficiency has also yielded positive results, with a 2% overall reduction in operating costs,” he noted.
Commitment to Sustainability and ESG Initiatives
Stanbic advanced its sustainability agenda in 2024, channelling KES 63 million in concessionary funding to MSMEs through grants and catalytic funding. The Group also allocated 5% of its lending towards green financing and extended KES 9 billion in support of infrastructure development. In alignment with its focus on high-impact sectors, Stanbic facilitated trade worth KES 76 billion, with agriculture accounting for 9% of its loan book.
On the environmental, social, and governance (ESG) front, the Group screened 266 clients for environmental and social risks, recycled 99.92% of its waste, reduced energy costs by 4%, and processed 85% of its transactions digitally.
South Sudan and Subsidiary Performance
Despite economic headwinds stemming from reduced oil production due to the Sudan conflict, Stanbic’s South Sudan Branch posted a KES 176 million profit after tax. Meanwhile, the newly launched asset management business registered KES 2.45 billion in Assets Under Management (AUM) within its first six months, underscoring its long-term potential.
The Group’s subsidiaries, SBG Securities Limited and Stanbic Bancassurance Intermediary Limited, also recorded strong performances, posting PAT of KES 20 million and KES 174 million, respectively.
Recognition and Shareholder Rewards
Stanbic’s robust performance and strategic positioning were recognized with several prestigious awards, including ‘Best Private Bank in Kenya’ by Global Finance, ‘Best FX Bank in Kenya’ by Euromoney, and ‘Best Investment Bank in Kenya’ by EMEA Finance Africa Banking Awards.
Further affirming its financial strength, Fitch Ratings maintained Stanbic Bank Kenya Limited’s Long-Term Issuer Default Rating (IDR) at ‘B’ with a Stable Outlook, highlighting the Bank’s solid risk management framework and operational efficiency.
As a reward to shareholders, the Board of Directors recommended a dividend payout of KES 20.74 per share, a 35% increase from the KES 15.35 per share distributed in 2023, reinforcing the Group’s commitment to sustainable shareholder value creation.
Stanbic Holdings Plc continues to navigate market challenges with a balanced approach, leveraging technology, innovation, and strategic investments to drive long-term growth and resilience.
