Stanbic Bank Kenya has announced its 2023 half-year results, showing a 47% growth in profit after tax to KES 7.1 billion, up from Ksh 4.8 billion in the same period in 2022.
The bank attributed the improved performance to its diversified revenue streams, cost management, and digital transformation.
Despite the negative effects of global and local economic trends on the business environment, Stanbic Kenya and South Sudan’s Chief Executive, Dr Joshua Oigara said that the Group achieved strong results by executing its strategy effectively.
“We faced challenging market and geopolitical conditions that created monetary and fiscal pressure. However, we used our core capabilities and market segments to take advantage of opportunities and overcome challenges, growing our Kenya and South Sudan businesses.
We are grateful to our clients, shareholders, and partners, who drive our performance. We are happy to announce a KSh 1.15 dividend per share for our shareholders.’’
Stanbic Holdings records KES 7.1B profit after tax for H1 2023. Strong revenue, market focus drove client & shareholder growth in Kenya & S. Sudan. We're poised for H2 momentum, investing in tools & systems to deliver optimal value. – DR. Joshua Oigara #StanbicHalfYearResults2023 pic.twitter.com/X5928iYen5
— Stanbic Bank Kenya (@StanbicKE) August 10, 2023
Customer deposits grew by 10% to KSh 259 billion, while loans and advances to customers increased by 12% to KSh 244 billion, showing the Bank’s commitment to supporting economic growth and development.
Stanbic’s Chief Financial and Value Officer Mr. Dennis Musau said that Stanbic’s strategy and key growth drivers helped the Group cope with the difficult operating environment.
“We had strong growth in all revenue lines and key balance sheet drivers, thanks to our client-centric approach. Our business model, liquidity and capital position are adequate for future growth.”
He added that Stanbic’s banking business in South Sudan remained profitable due to high operational efficiency and market focus.
Summary of the performance:
|Amounts in (Kshs bn)|
|Balance Sheet||H1’2022||H1’2023||y/y change|
|Net Loans and Advances||244.0||281.4||15.3%|
|Deposits Per Branch||9.9||9.5||(4.2%)|
|Amounts in (Kshs bn)|
|Income Statement||H1’2022||H1’2023||y/y change|
|Net interest Income||8.3||12.1||44.4%|
|Net non-interest income||6.9||8.9||29.7%|
|Total Operating income||15.2||20.9||37.8%|
|Loan loss provision||(1.3)||(2.5)||98.0%|
|Total Operating expenses||(7.3)||(11.2)||52.9%|
|Profit before tax||6.6||9.7||47.3%|
|Profit after tax||4.8||7.1||47.0%|
Stanbic Holdings Share Price
Stanbic Holdings Limited shares rose by 1.5% to close at Ksh 117.00 on Wednesday, August 9, 2023, on the Nairobi Securities Exchange (NSE).
The stock outperformed its previous closing price of KES 115.00 and increased its year-to-date return to 14.5%. Stanbic started the year at Ksh 102.00 per share and is currently ranked 15th on the NSE in terms of performance this year.