Stanbic Holdings Plc has announced a profit after tax of KES 7.2 billion for the first half of 2024, marking a 2 percent increase year on year. The company, which operates in Kenya and South Sudan, attributed this growth to a rise in net interest income and a substantial 30 percent expansion in its balance sheet, which grew from KES 384 billion to KES 498 billion. An interim dividend of KES 1.84 per share has been declared.
Joshua Oigara, Chief Executive of Stanbic Bank Kenya and South Sudan, highlighted the bank’s resilience despite a challenging economic environment. “Despite a broadly positive economic outlook in Kenya and the region, the first half of 2024 was a mixed economic landscape. The appreciation of the Kenya Shilling against the Dollar bolstered foreign exchange reserves and provided some economic stability. However, severe floods in between the months of March to May, caused extensive damage to infrastructure, agriculture, and homes, disrupting economic activities and necessitating substantial recovery efforts. Additionally, the latter part of the half was characterised by civil protests” said Oigara.
Financial highlights include a 4 percent increase in net interest income to KES 12.6 billion and a 7 percent reduction in operating costs due to previous investments and favorable foreign exchange gains. The cost-to-income ratio improved to 40.4 percent and customer deposits surged by 39 percent to KES 360 billion. The non-performing loan (NPL) ratio stood at 9.4 percent, with credit impairment charges dropping by 22 percent due to better portfolio quality and enhanced risk management.
Stanbic Bank Kenya & South Sudan, Chief Executive – Dr. Joshua Oigara, Stanbic Bank Kenya Chairman – Joseph Muganda, Stanbic Bank Kenya & South Sudan Chief Finance and Value Officer Dennis Musau, and Regional Chief Executive – East Africa, Standard Bank Group – Patrick Mweheire during the release of Stanbic Holdings PLC 2024 half-year financial results at their headquarters in Nairobi.
Stanbic’s Chief Financial and Value Officer, Dennis Musau, praised the results as a testament to the bank’s commitment to supporting customers and managing risk prudently.
“Our operating results indicate that we continue fostering economic growth, as evidenced by significant growth in the balance sheet driven by investments in key strategic sectors to catalyse sustainable economic development. The strong growth in customer deposits is a testament to the trust our clients have in us and validates our significant investments in enhancing the customer experience,” noted Mr. Musau.
The Stanbic Kenya Foundation made significant strides during this period, with initiatives in education, healthcare, and sustainable development. Notable projects include the ‘Future Ni Digital Skills’ program, aimed at improving digital literacy among youth and women, and support for over 50,000 SMEs through financial resources and capacity-building.
The foundation also awarded grants totaling USD 700,000 to fourteen winners of the USADF and Stanbic Kenya Foundation Grant Fund. In addition, the bank disbursed over KES 54 billion to various sectors, including agriculture and SMEs, and supported the Eurobond refinancing program to stabilize the macroeconomic environment.
In a bid to support the youth in South Sudan, Stanbic Bank partnered with NBA Africa and the Luol Deng Foundation to build a FIBA-standard outdoor basketball court in Juba, aiming to provide a safe recreational space and foster future basketball talent.