Share this
Stanbic Holdings Plc has just released its financial results for the fiscal year ending December 31, 2023. The numbers are nothing short of remarkable, showcasing the bank’s resilience and commitment to growth even in challenging times.
Key Highlights:
- Profit After Tax: Stanbic Holdings Plc reported an impressive net profit of KES 12.2 billion. This substantial growth reflects the bank’s ability to navigate a tough operating environment marked by currency fluctuations, inflationary pressures, and geopolitical tensions.
- Dividend Payout: Shareholders will be pleased to know that Stanbic Holdings Plc is distributing dividends equivalent to 50% of its earnings. This commitment to rewarding investors underscores the bank’s financial strength and long-term vision.
Factors Driving Growth
- Improved Net Interest Margins: The bank’s net interest income surged by 35% to KES 25.6 billion. This growth was driven by a healthy balance sheet expansion and increased margins on interest-earning assets.
Strong Trading Revenue: Stanbic’s trading revenue played a significant role in its overall performance. The bank’s ability to capitalize on market opportunities contributed to its robust financial results. - Focus on SMEs: Stanbic remains committed to supporting small and medium-sized enterprises (SMEs). By aligning with economic growth vectors, the bank aims to drive Kenya and South Sudan’s prosperity.
- CEO’s Perspective: Dr. Joshua Oigara, Chief Executive of Stanbic Bank Kenya and South Sudan, emphasized the bank’s resilience. Despite external challenges, the diligent execution of their strategic plan has yielded positive outcomes. Dr. Oigara expressed confidence in the bank’s new three-year strategy, which builds on the momentum from previous fiscal periods.
“Despite facing a challenging business environment marked by heightened currency and inflationary pressure, rising interest rates and geopolitical tensions, the Group delivered strong financial results. This demonstrates resilience in our business model underpinned by diligent execution of our strategy. We remain committed to our purpose of driving Kenya and South Sudan’s growth, more so as we transition to our new 3-year strategy.”
Dr. Oigara.
- Customer Franchise Growth: Customer deposits increased by 18% to KES 321 billion, demonstrating the bank’s strong customer base and trust.Loans and advances rose by 10% to KES 261 billion, reinforcing Stanbic’s commitment to supporting businesses and individuals.
- Non-Interest Income Boosted by Foreign Exchange Revenue: The bank’s non-interest income received a significant boost from foreign exchange activities. Increased volumes and better forex performance contributed to this positive trend.
Stanbic Holdings Plc’s financial results are a testament to its strategic focus, resilience, and dedication to driving growth. As the bank embarks on its new three-year strategy, investors and customers can look forward to continued success.
