Stanbic Bank Kenya has reported a 9% decline in profit after tax for the first half of 2025, falling to Ksh 6.5 billion from Ksh 7.2 billion in H1 2024. The drop in earnings was mainly attributed to reduced interest income and higher operating expenses, despite improvements in cost efficiency and credit quality.
The bank’s profit before tax fell by 14.2% to Ksh 8.6 billion from Ksh 10 billion in the prior year. Stanbic Bank H1 2025 results show that total income dropped to Ksh 19.4 billion, down from Ksh 20.1 billion in H1 2024. This was driven by a 5.8% decline in net interest income, which stood at Ksh 11.8 billion, down from Ksh 12.6 billion. The decline reflects a 24% reduction in interest income due to an 180-basis point cut in lending rates, partially cushioned by lower funding costs.
Non-interest revenue increased marginally to Ksh 7.6 billion, from Ksh 7.56 billion last year. The bank benefited from stronger fee and commission income, which helped offset year-on-year pressure on foreign exchange income. As a result, non-interest income rose by 161 basis points as a share of total revenue. Operating expenses rose to Ksh 9.4 billion, up from Ksh 8.1 billion, marking a 15.5% increase. The bank attributed the rise in expenses to increased provisioning aimed at enhancing its balance sheet resilience. The credit loss ratio rose slightly to 1.19% from 1.09%.
Despite the decline in profits, key performance metrics improved. Net interest margin (NIM) increased to 5.93%, up by 0.4 percentage points. The cost-to-income ratio (CTI) improved to 48.1%, down from 55.8% in the same period last year, indicating improved operational efficiency.
“Our H1 2025 performance reflects measured progress in a shifting but improving economic environment. While these is a notable recovery from in Q1 performance, this outcomes reflect persistent margin pressure and the broader headwinds facing the industry, including subdued credit growth. Despite this, we’ve maintained strong cost discipline, preserved capital strength, and continued to channel credit into high-impact, strategic sectors.” Joshua Oigara, CEO of Stanbic Bank Kenya and South Sudan.
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Return on equity declined to 17.4%, down 3.6 percentage points, while the total capital ratio rose to 18.9%, up from 16.4% in H1 2024. Liquidity also improved, with the liquidity ratio increasing to 54.4% from 50.5%. The bank’s balance sheet contracted slightly. Total assets declined by 4.9% to Ksh 473.7 billion, from Ksh 498.1 billion. Customer deposits dropped by 5.5% to Ksh 329.6 billion, while customer loans and advances declined by 2.3% to Ksh 233.5 billion. Asset quality remained healthy, with the non-performing loan (NPL) ratio improving to 9.5%, down from 10.1%, and well below the industry average of 17.6%. The increase in NPL provision cover was part of efforts to strengthen credit risk management.
To reward shareholders, Stanbic Bank Kenya H1 2025 interim dividend per share was set at Ksh 3.80, up from Ksh 1.84 in June 2024.
“As interest rates continue to ease and macroeconomic conditions stabilize, we see opportunities to unlock growth in the second half. Our focus remains on proactive balance sheet management, deepening customer engagement, and delivering sustainable value, for our stakeholders, and for the communities we serve.” Joshua Oigara noted.
The bank also reported steady customer and network growth. Customer numbers grew to 310,000 from 284,000 in H1 2024. The branch network remained stable at 30 locations, while the number of ATMs rose to 59 (up from 54). Cash Deposit Machines (CDMs) held steady at 76, and agent outlets declined slightly to 714 from 740.
Stanbic bank continues to integrate environmental and social impact into its operations. In H1 2025, it disbursed:
- Ksh 4.5 billion in green building loans
- Ksh 1.2 billion in climate-smart agriculture financing
- Over Ksh 14 million in solar financing
- Planted 30,000 trees
- Screened all loans above USD 1 million for environmental and social (E&S) risk
- Recycled 99.92% of its waste
Additionally, according to Oigara, the Corporate and Investment Banking division facilitated a new USD 1.5 billion Eurobond issuance for the Republic of Kenya, while the Business and Commercial Banking unit disbursed Ksh 16.4 billion in loans to SMEs. The Personal and Private Banking division recorded a fourfold increase in scheme disbursements, and the Insurance and Asset Management business managed assets exceeding Ksh 4 billion.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.