Stanbic Holdings reports 13 percent profit growth to KES 13.7 Billion in 2024
Stanbic Holdings Plc has reported a 13 percent increase in net profit to KES 13.7 billion for the financial year ended December 31, 2024, despite a challenging economic environment. The growth was driven by lower credit impairment charges, cost efficiencies, and increased transactional volumes, even as total income declined due to higher funding costs and a one-off transaction recorded in 2023.
The Group’s interest income surged by 27% from KES 37.9 billion to KES 48.2 billion, supported by a higher-yielding asset book and strong investment portfolio performance. However, a 93% rise in interest expenses resulted in a 5 decline in net interest income. Non-interest revenue fell by 1.7 percent due to tighter margins but was partially offset by higher trading and transaction volumes.
Earnings per share rose by 13 percent, while Return on Equity (RoE) improved by 70 basis points, reflecting enhanced profitability. The Group’s balance sheet remained stable, demonstrating its prudent approach to growth amid shifting market conditions.
Stanbic Bank Kenya and South Sudan Chief Executive Dr. Joshua Oigara credited the strong performance to the bank’s continued investments in technology, talent, and strategic business initiatives.
“We had a robust performance in 2024, driven by our focus on platforms, solutions, and processes that fuel business growth while maximizing stakeholder value. Our technology and innovation-driven strategy has positioned us for resilient earnings and long-term impact,” he stated.
The Group upgraded its core banking system and revamped its mobile banking platforms, enhancing customer experience and operational efficiency. Additionally, it launched an asset management business and strengthened its Private Banking and SME offerings.
In line with its sustainability agenda, Stanbic facilitated KES 63 million in concessionary funding for MSMEs, directed 5 percent of its lending towards green financing, and provided KES 9 billion for infrastructure development. The Group also facilitated trade worth KES 76 billion, with agriculture accounting for 9 percent of its loan book.
On environmental, social, and governance (ESG) stewardship, Stanbic screened 266 clients for environmental and social risks, recycled 99.92 percent of its waste, cut energy costs by 4 percent, and processed 85 percent of transactions digitally.
Despite the economic challenges in South Sudan due to reduced oil production, Stanbic’s branch in the country posted a KES 176 million profit after tax. The newly launched asset management business reported KES 2.45 billion in Assets Under Management (AUMs) within six months of operation.
SBG Securities Limited and Stanbic Bancassurance Intermediary Limited recorded a profit after tax of KES 20 million and KES 174 million, respectively.
The Board of Directors recommended a dividend of KES 20.74 per share, marking a 35% increase from KES 15.35 in 2023, reinforcing the Group’s commitment to delivering shareholder value.
During the year, Fitch Ratings affirmed Stanbic Bank Kenya’s Long-Term Issuer Default Rating (IDR) at ‘B’ with a Stable Outlook, citing strong risk controls and operational efficiency. The Bank also won multiple industry awards, including Best Private Bank in Kenya (Global Finance), Best FX Bank in Kenya (Euromoney), and Best Investment Bank in Kenya (EMEA Finance Africa Banking Awards).
With a solid financial position, strategic digital advancements, and a strong sustainability agenda, Stanbic Holdings remains focused on driving growth and delivering long-term value for its clients and shareholders.