Stanbic Holdings reported a profit of Ksh 7.2 billion for the first half of 2024, reflecting a 2.3% growth compared to the corresponding period in 2023.
The bank’s Chief Executive Officer, Joshua Oigara, emphasized that these results highlighted the bank’s sustained strength in the face of a tough operating environment.
“Despite a broadly positive economic outlook in Kenya and the region, the first half of 2024 was a mixed economic landscape. The appreciation of the Kenya Shilling against the Dollar bolstered foreign exchange reserves and provided some economic stability. However, severe floods in between March to May, caused extensive damage to infrastructure, agriculture, and homes, disrupting economic activities and necessitating substantial recovery efforts. Additionally, the latter part of the half was characterized by civil protests.’’ Oigara stated.
In spite of these hurdles, Oigara highlighted that the Group managed to deliver solid financial outcomes, driven by effective execution and a strong focus on their newly outlined three-year growth strategy.
The Group saw a significant increase in loans to both customers and other banks, with figures rising by 28.4% from Ksh 281.4 billion in H1 2023 to Ksh 361.4 billion in H1 2024. Similarly, total assets experienced a 29.6% jump, climbing from Ksh 384.3 billion to Ksh 497.9 billion.
Net interest income showed a 4.2% uptick, increasing from Ksh 12.1 billion to Ksh 12.6 billion, largely driven by higher earnings from lending activities. On the other hand, non-interest income dropped by 15.1%, falling from Ksh 8.9 billion to Ksh 7.6 billion.
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Deposits from both banks and customers surged by 35.8%, reaching Ksh 387.6 billion, up from Ksh 285.4 billion in the previous year. Meanwhile, total equity grew by 8.5%, rising from Ksh 64 billion to Ksh 69.4 billion.
The Group also managed to reduce its total operating expenses by Ksh 1.1 billion, bringing them down to Ksh 10.1 billion from Ksh 11.2 billion in H1 2023. Gross non-performing loans saw a slight increase, moving from Ksh 23.8 billion to Ksh 24.4 billion.
The interim dividend was raised by 60%, reaching Ksh 1.84 per share, up from Ksh 1.15 per share last year. Additionally, the cost-to-income ratio showed improvement, decreasing from 41.6% to 40.4%. However, total revenue experienced a decline of 4%, dropping from Ksh 20.9 billion in H1 2023 to Ksh 20.1 billion in H1 2024.