Stanbic Holdings Plc has reported a Profit After Tax (PAT) of KES 6.5 billion for the half-year ended 30 June 2025, reflecting a 9 percent decline compared to the same period last year. The drop in profitability was primarily attributed to reduced net interest income and elevated operating costs, despite the company delivering a robust return on equity of 17.4 percent.
The listed financial services group, which operates in Kenya and South Sudan, said its performance was underpinned by a strong showing in non-interest revenue and reduced credit impairment charges. These helped cushion the pressure from lower net interest income, amidst a challenging economic environment marked by subdued private sector credit uptake and global geopolitical uncertainties.
“Our focus in this period was largely on supporting our clients navigate shifting market conditions, while fortifying our growth through robust risk management, capital strength and well managed liquidity levels,” said Stanbic Group Chief Executive, Dr Joshua Oigara. “We believe that our business will continue to demonstrate resilience and keep momentum even as the market continues to post recovery.”
Key Operational Gains
Stanbic’s active customer base grew by 9 percent during the period, a performance driven by the continued optimisation of its digital platforms and customer-centric products. The Group’s total assets rose by 4 percent from the December 2024 position, supported by targeted lending and strengthened credit quality.
All four business lines recorded notable achievements:
- Corporate and Investment Banking advised on the Republic of Kenya’s USD 1.5 billion Eurobond issuance and tender offer, reinforcing its market leadership in sovereign advisory.
- Business and Commercial Banking disbursed KES 16.4 billion to SMEs, demonstrating support to critical sectors of the economy.
- Personal and Private Banking achieved a fourfold increase in scheme loan disbursements and grew its active digital banking user base past 100,000, aided by upgrades to the Omni Channel app.
- Insurance and Asset Management surpassed KES 4 billion in assets under management within nine months of launch.
Stanbic Bank Kenya, the Group’s flagship subsidiary, was ranked among the top five lenders in SME financing by the Kenya Bankers Association. The bank also received accolades at the 2025 Think Business Awards, placing second runner-up in the Best Bank to Borrow From and Best Bank in Mortgage Finance categories.
Financial Highlights
- Profit After Tax: KES 6.5 billion, down 9 percent year-on-year
- Return on Equity: 17.37 percent
- Customer Deposits: KES 330 billion, up 4 percent from December 2024
- Loans and Advances: KES 233 billion, up 1 percent
- Non-Performing Loan Ratio: 9.5 percent, significantly below the industry average of 17.6 percent
- Operating Expenses: Rose by 16 percent due to foreign exchange effects and strategic investments
- Trading Revenue: Declined by 7 percent
- Cost-to-Income Ratio: 48.1 percent
- Credit Impairment Charges: Declined by 26 percent
- Customer Growth: Increased by 9 percent
“We have adopted a proactive, data-led approach to managing risk,” said Dennis Musau, Chief Financial and Value Officer. “Our enhanced credit assessment frameworks and sector-specific models have supported asset quality even as we grow lending.”
Musau added that commercial lending to the private sector grew by 2 percent in May, up from a contraction of 2.9 percent in January, signalling a cautious rebound in market activity.
Advancing Sustainability and Inclusive Growth
Stanbic also deepened its impact investment footprint, aligning with Kenya’s sustainable development goals. Key sustainability outcomes in H1 2025 include:
- KES 4.5 billion channelled to green infrastructure
- KES 1.2 billion lent to climate-smart agriculture
- KES 900 million disbursed under the affordable housing programme
- KES 94.8 billion facilitated in trade loans
- 30,000 trees planted for climate mitigation
Through the Stanbic Kenya Foundation, the Group partnered with GIZ, the Bill and Melinda Gates Foundation, Microsoft, and American Tower Corporation to promote job creation, youth skills development, and financial inclusion. Over 33,000 women entrepreneurs benefited from financial literacy and enterprise training, while KES 24 million was disbursed in catalytic loans to MSMEs.
Shareholder Returns
The Board has recommended an interim dividend of KES 3.80 per share, representing a 106.5 percent increase year-on-year, reflecting confidence in the Group’s capital position and future outlook.
Outlook
Looking ahead, Stanbic Holdings remains optimistic. With continued investment in digital innovation, risk controls, and client-centric growth, the Group is positioning itself to tap into opportunities from the easing interest rate environment and emerging economic recovery.
“Even with continued macroeconomic volatility, we are confident in our ability to deliver long-term value for our shareholders,” said Dr Oigara.