Stanbic Holdings Plc's half-year results for the period ended June 30 rose marginally by two percent to Sh7.2 billion attributed to improved net interest income and a 30 percent growth in the balance sheet.
The listed company with operations in Kenya and South Sudan grew its balance sheet from Sh384 billion to Sh498 billion.
The bank’s chief executive, Joshua Oigara said that the bank's results highlight its continued resilience amid a challenging 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,’’ Oigara.
''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.’’
Notwithstanding the challenges, Oigara said the Group delivered positive financial anchored on diligent execution and devotion to the newly reimagined three-year growth strategy.
He added that they remain committed to delivering superior value to clients, shareholders, and partners, who are an important cog in the bank’s performance.
The bank’s net interest income grew by four percent to Sh12.6 billion on the back of growth in the average lending book and higher assets yield.
Operating costs decreased by seven attributable to the base effect of the previous year's investments aimed at improving client experience and foreign exchange gains from the appreciation of the Kenya Shilling.
The costs-to-income ratio stood at 40.4 percent with a positive JAWS ratio, indicating an efficient cost management approach.
Customer deposits rose by 39 percent to Sh360 billion. Non-Performing Loans (NPL) ratio closed the period at 9.4 percent.
Credit impairment charges dropped by 22 percent attributable to improved portfolio quality, strengthened collateral values, and enhanced risk management practices.
Return on equity (ROE) improved to 21per cent, up from 20.5 percent signaling the commitment to delivering incremental returns for the shareholders.
The bank’s chief financial and Value officer Dennis Musau said that the results demonstrated the bank’s resolve to continuously support our customers navigate complex operating landscapes while prudently managing risk.
"Our operating results indicate that we continue fostering economic growth, as evidenced by significant growth in the balance sheet driven by investments in key strategic sectors to catalyze sustainable economic development.’’
He added that the strong growth in customer deposits is a testament to the trust our clients have in us and validates our significant investments in enhancing the customer experience.
During the review period, Stanbic Kenya Foundation significantly enhanced its impact initiatives in education, healthcare, and sustainable development through partnerships with various organizations, including the United States African Development Foundation (USADF), GIZ, the Bill and Melinda Gates Foundation, American Towers Company, and Microsoft Corporation.
In January 2024, the Stanbic Kenya Foundation teamed up with American Towers Company and Microsoft Corporation to launch the ‘Future Ni Digital Skills’ programme in select Kenyan counties.
This initiative aims to boost digital literacy among youth, women, and communities, targeting training up to 10,000 individuals, with at least 3,000 earning in-demand certificates. The programme also supports over 30 Technical and Vocational
Education and Training (TVET) centres, Vocational Training Centres (VTCs), and Community-Based organisations (CBOs).
It focused on empowering Small and Medium Enterprises (SMEs) through collaborations with GIZ and USADF.
To date, the Group has provided tailored financial support and capacity-building resources, with a special focus on women, youth, and individuals with disabilities.
Improved access to credit has helped many SMEs become bankable, addressing common challenges in securing formal financial services.
Through funding and the Group’s DADA initiative, Stanbic has equipped over 50,000 SMEs with essential tools and solutions, leading to increased household incomes, job creation, and enhanced market access. The Foundation has also issued concessional loans totaling Sh119 million.
At the Stanbic Bank Sustainability Report launch on July 22, 2024, the Group awarded fourteen winners from the 4th cohort of the USADF and Stanbic Kenya Foundation (SKF) Grant Fund, collectively receiving USD 700,000.
Through our lending program in H1 2024, the bank disbursed over KES 54 billion to various sectors of the economy, mainly agriculture, small and medium-sized enterprises (SMEs), and industrial establishments.
This is aimed at expanding commerce, increasing employment opportunities, and uplifting livelihoods through property ownership.
Additionally, we facilitated the Eurobond refinancing program, helping the government achieve a stable fiscal and macroeconomic environment.