Stanbic Holdings Plc has reported a 13% increase in Profit after Tax to KES 13.7bn for the year ended 31 December 2024. The increase came on the back of lower income compared to the prior year, lower operational costs and reduced credit impairment charges.
The Group posted a 27% rise in interest income from Kes 37.9bn to Kes 48.2bn in the year under review on the back of a higher yielding asset book and investment portfolio. This was however moderated by a 93% rise in interest expense that translated to a 5% decline in Net interest income.
During the reporting period, Non interest revenue decreased by 1.7% owing to narrowed margins and impact of a one-off significant transaction in 2023. This was however compensated by higher trading and transactional volumes. This resulted in a 3.8% drop in total income.
Earnings per share increased by 13%, while Return on Equity increased by 70bps driven by improved profitability in the year, affirming the Group’s focus on delivering value to its shareholders. The balance sheet remained largely stable, a reflection of the Group’s balanced approach to growth while managing market dynamics.
Commenting on the performance, Dr Joshua Oigara, the Chief Executive Stanbic Bank Kenya and South Sudan said, ” We had a robust performance in 2024, fuelled by our ongoing focus on platforms, solutions, and processes that drive business growth while maximizing value for our stakeholders. Our investments in technology, talent, and innovative business strategies have positioned us to deliver resilient earnings and create a positive impact across Kenya and South Sudan. We remain dedicated to partnering with our clients and shareholders to achieve sustainable, long-term growth.’’
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The Group upgraded its core banking system and revamped its mobile banking platforms, paving the way for improved client experience and industry competitiveness. It also expanded its client offerings by launching a new asset management business and introducing a revamped Private Banking and SME proposition.
Dennis Musau, the Chief Financial and Value Officer, affirmed the Group’s resilience and strength amid dynamic market movements. He said, “We deliberately shielded our customers from high credit costs by not passing the entire impact of rising funding costs to them. This helped not only grow our average lending through the period but also keep credit defaults and impairments below industry levels. Our continued focus on extracting efficiency from our operations continues to bear fruits as evidenced by the 2% overall reduction in operating costs.”
In 2024, the Group advanced its sustainability commitments across its four impact areas: Enterprise Growth and Job Creation, Infrastructure Development and Just Energy Transition, Climate Change Mitigation and Adaptation, and Financial inclusion. This included Kes 63m concessionary funding to MSMEs distributed through grants and catalytic funding, 5% lending towards green financing, and Kes 9b support towards infrastructure development. Further, and aligned to the Group’s commitment to sectors that drive growth, the group facilitated trade worth Kes 76b, with 9% of its loan book being in agriculture.
On ESG stewardship, the Group screened 266 clients for environmental and social risks, recycled 99.92% of its waste, cut energy costs by 4%, and processed 85% of transactions digitally.
The South Sudan Branch faced unique challenges given the reduction in oil production in the country because of the Sudan war. Despite this, the Branch registered a Kes 176m profit after tax.
The newly launched asset management business registered KES 2.45bn Assets Under Management (AUMs) in the first 6 months since launch, demonstrating the segment’s viability and strategic posture into the future. The Group’s subsidiaries, namely SBG Securities Limited and Stanbic Bancassurance Intermediary Limited, recorded a profit after tax of Kes 20m and Kes 174m, respectively.
In November 2024, Fitch Ratings affirmed Stanbic Bank Kenya Limited’s Long-Term Issuer Default Rating (IDR) at ‘B’ with a Stable Outlook, pointing to the strength of the Bank’s risk control environment and operational efficiency.
The Bank received several awards during the year demonstrating the lender’s strength, expertise and competitiveness including the best Private Bank in Kenya by Global Finance, the best FX Bank in Kenya (Euromoney), and the Best Investment Bank in Kenya (EMEA Finance Africa Banking Awards), among others.
In addition, the Board of Directors recommended a dividend of KES 20.74 per share, up from 15.35 per share in 2023, representing a 35% increase, demonstrating the Group’s commitment to sustaining shareholder value.
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