Stanbic Bank has posted Kshs 10.1 billion in net profit for the first nine months of 2024, representing a 9% growth that was powered by higher interest income.
The lender reported a 12% year on year growth on its balance sheet bolstered by a continued execution of client focused strategy and calculated deposit mobilization.
Stanbic Bank Kenya and South Sudan Chief Executive, Joshua Oigara, said: “We are navigating a challenging macroeconomic environment characterized by slower economic growth in the second half of 2024 amid easing inflation. These complexities have undoubtedly posed significant pressures on the financial sector, from deceleration in credit to the private sector to constrained consumer spending.
“However, our Bank demonstrated remarkable resilience in the first nine months of the year by registering growth both in our Kenya and South Sudan operations. Our diversified portfolio, and commitment to targeted solutions enabled us to deliver sustained value for our clients, partners and shareholders.”
Key highlights:
- Net interest income grew by 5% to Kshs 18.9 billion on the back of growth in the average lending book and higher assets yield.
- Non-interest income reduced by 18% on account of significant non-repeated transactions in the 2023 base as well as contraction of trading margins, alleviated by increased client activity.
- Operating costs decreased by 5% on harnessing previous investments aimed at improving client experience and foreign exchange gains from the appreciation of the Kenya Shilling.
- Credit Impairment charges decreased by 40% to Kshs 2.7 billion attributable to judicious credit risk management, improved recoveries and impact of the Kenya shilling appreciation in early 2024.
The firm’s Chief Financial and Value Officer Dennis Musau noted that the Bank’s investments in people, technology and tailored product offerings have yielded operational efficiency and customer-centricity.
“Our results reflect the Bank’s balanced approach to navigating a dynamic operating environment. Strategic management of the balance sheet mix has enabled us to cushion against macroeconomic shifts while positioning the Bank for sustainable growth amidst shifting macroeconomic factors, ” said Musau.