Shareholders at the Stanbic Bank Kenya will, subject to approval at the next Annual General Meeting, enjoy 4.98 billion shillings in dividends, being 55 percent of the 2022 profit after tax and representing a 40 percent increase in total dividend payment from the previous year’s 3.56 billion shillings.
The announcement came during the announcement of the annual financial results where Stanbic Holdings Plc announced a 9.1 billion-shilling after-tax profit for its financial year ended 31 December 2022. The lender attributed the 26 percent after-tax profit growth to strong revenue and balance sheet growth.
Stanbic Kenya and South Sudan’s Chief Executive, Mr. Joshua Oigara said the firm’s strategic plan formulated and adopted three years ago continues to facilitate growth and organizational resilience.
“Despite the uncertain and challenging operating environment last year, the business delivered strong results, thanks to focused execution across our strategic plan. The plan is anchored on catalytic growth pillars such as customer service excellence and technology integration to boost operating efficiencies,” Oigara said.
Buoyed by a diversified portfolio of corporate, commercial, investment, and retail banking financial solutions, the lender posted a 28% revenue growth to close at KES 32 billion in the period under review. Customer deposits increased by 12% to stand at KES 272 billion, while loans and advances to customers were up 27% to close at KES 236 billion, highlighting the Bank’s commitment to supporting economic growth and development.
Stanbic Holdings Chief Financial and Value Officer Mr. Dennis Musau noted that the significant progress on its strategic plan and requisite measures made by the Bank over time have cumulatively contributed to its strong growth momentum.
“Over time, we have made investments to drive faster customer acquisition, efficient and convenient service, and internal operational efficiency. The outcome of these efforts is evident in our Cost to Income ratio which reduced from 50.9% in 2021 to 46.7% in 2022, boosting our Return on Equity to 15.3%, up from 13.3% in 2021,” said Mr. Musau.
“Along the same grain of customer-focused investments, as the East African region continues to thrive as one of the fastest growing regions on the continent, Stanbic launched borderless banking in 2022 which enables customers to transact seamlessly and real-time across Kenya, Uganda, Tanzania, and South Sudan. To date, this platform has facilitated more than USD 800M worth of transactions across the countries and contributed non-funded revenue to the bank” Musau added.
Stanbic has been intentional in its focus on diversity and inclusion, with a specific focus on women. Through the Dare to Aspire Dare to Achieve (DADA) platform, the Bank has committed KES 20 billion (approximately USD 185 million) to finance women. Since its launch 3 years ago, the platform has attracted more than 53,000 new to bank ‘Dadas’ and disbursed loans amounting to KES 7.7B.
Stanbic has consistently funded Micro, Small, and Medium Enterprises (MSMEs). As at end of December 2022, the Bank issued a cumulative of KES 33 billion to these entities under its Business and Commercial Banking business segment. In addition, through the Stanbic Foundation and strategic partners, the Bank disbursed KES 76 million in grants and catalytic funding to over 400 MSMEs in the country.
As a trusted financial institution, the Bank’s contribution has been recognized through various awards such as Kenya’s Best Investment Bank, Best Trade Finance Bank, KEPSA Gender Mainstreaming Award (The Women on Boards Network, 2022), Financial Leadership Award Winner (Women Business Awards 2022) and Overall winner of the Financial Reporting Awards (FIRE Awards, 2022).
In December 2022, the Stanbic Board of Directors appointed Mr. Joshua Oigara as Chief Executive of Stanbic Bank Kenya, and South Sudan, following the retirement of Mr. Charles Mudiwa, after two decades of illustrious service to the Standard Bank Group.