Stanbic Bank Kenya and South Sudan has reported a profit after tax of KES 10.1 billion for the nine months ending September 30, 2024. The 9 percent year-on-year growth in profitability has been attributed to improved net interest income, underpinned by a 12 percent expansion in its balance sheet to KES 463 billion.
Dr. Joshua Oigara, Chief Executive Officer of Stanbic Bank Kenya and South Sudan, attributed the strong performance to the Bank’s new three-year strategy, which has proven instrumental in navigating a challenging macroeconomic environment. “Despite slower economic growth in the second half of 2024 and easing inflation, the Bank demonstrated remarkable resilience by achieving growth in both Kenya and South Sudan operations. Our diversified portfolio and commitment to delivering targeted solutions have enabled us to sustain value for clients, partners, and shareholders,” said Dr. Oigara.
Net Interest Income Growth: Net interest income rose by 5 percent to KES 18.9 billion, driven by an increase in the average lending book and higher yields on assets.
Decline in Non-Interest Income: Non-interest income fell by 18 percent, largely due to a high base in 2023, which included significant non-recurrent transactions, and a contraction in trading margins, though this was partially offset by increased client activity.
Operating Costs Reduction: Operating costs decreased by 5 percent, reflecting gains from prior investments in client experience and foreign exchange gains following the Kenya Shilling’s appreciation.
Improved Credit Risk Management: Credit impairment charges dropped by 40% to KES 2.7 billion, thanks to better credit risk management and recoveries.
Customer Deposits: Deposits grew by 7 percent to KES 328 billion, highlighting the Bank’s strategic focus on funding requirements and balance sheet optimization.
The Bank also achieved several milestones during the period. Notably, it launched an asset management business through its Insurance and Asset Management Unit to provide tailored investment solutions for both retail and institutional investors.
In addition, Fitch Ratings recently reaffirmed Stanbic Bank’s Long-Term Issuer Default Rating (IDR) at ‘B’ while upgrading its outlook to stable. This endorsement underscores the Bank’s financial resilience and effective risk management amidst a volatile economic environment.
Stanbic Bank’s leadership in financial services was recognized with several accolades, including two Euromoney awards for Best FX (forex) and Best Investment Bank in Kenya. It was also named Best Trade Finance Bank in Kenya 2024 by Global Trade Review.
Through the Stanbic Kenya Foundation, the Bank continued to drive socio-economic transformation. Key initiatives included a digital upskilling program aimed at equipping 10,000 individuals with future-ready skills, with at least 3,000 earning in-demand certificates. The program supported over 30 Technical and Vocational Education and Training (TVET) centers, Vocational Training Centers (VTCs), and Community-Based Organizations (CBOs).
The Foundation also focused on empowering Small and Medium Enterprises (SMEs) through a partnership with the United States African Development Foundation (USADF).
Commenting on the Bank’s future, Chief Financial and Value Officer Dennis Musau emphasized the focus on operational efficiency and customer-centric solutions. “Our balanced approach to managing the balance sheet mix has positioned us for sustainable growth amid shifting macroeconomic factors,” he noted.
Despite challenges such as slower credit growth and constrained consumer spending, Stanbic Bank remains optimistic about sustaining its upward trajectory, thanks to its strategic investments in technology, people, and tailored product offerings.
The Q3 2024 performance reinforces Stanbic Bank’s reputation as a resilient and innovative leader in the financial sector, delivering consistent value for its stakeholders.