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Stanbic Bank's Q1 profit up 84% on revenue growth

Revenue rose by 65 per cent to close the quarter at Sh11 billion.

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by ALFRED ONYANGO

Business11 May 2023 - 13:30
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In Summary


  • Customer deposits  increased by 24 per cent to Sh291 billion while customer loans rose by 12 per cent to Sh230 billion.
  • Return on equity improved  to 21.7 per cent from 17.6 per cent reported in the same period last year.
Chief executive Kenya south Sudan Joshua Oigara, and Stanbic's Regional Chief Executive, Patrick Mweheire Chief financial value officer, Dennis Musau go through the presentation moments after the Stanbic holdings PLC full year financial results.

Stanbic Bank has announced a profit after tax of Sh3.9 billion for the three months  to March 31, 2023, a 84 per cent  rise compared to the same period last year.

The lender attributes the profit to the strong growth in revenue across all business segments and a strong balance sheet growth over the period under review.

Revenue grew by 65 per cent to close the quarter at Sh11 billion, a mark the lender says is a reflection of its continued execution of its 2021-2023 strategy.  

Customer deposits  increased by 24 per cent to Sh291 billion while customer loans rose by 12 per cent to Sh230 billion.

Stanbic Bank Kenya and South Sudan CEO Joshua Oigara said during the quarter, the bank remained focused on executing its three year medium-term strategy that started in 2021.

"The strategy's outcomes demonstrate our ability to create shared value and sustainable returns for shareholders  and multiple stakeholders," Oigara said. 

He said Stanbic in conjunction  with SBG Securities Ltd, successfully completed a significant transaction that resulted in the execution  of the largest trade in the history of the Nairobi Securities Exchange (NSE).

Stanbic's chief financial and value officer Dennis Musau said that the bank realised strong growth momentum in all revenue lines. 

“Our accelerated efforts in implementing our strategy, driving operational efficiencies and managing costs have seen us progressively manage our cost to income ratio downwards to stand at 40.5 per cent compared to 49.6 per cent in prior period," Musau said.

He added that as a result, their return on equity in the period under review improved  to 21.7 per cent from 17.6 per cent reported in the same period last year.

The bank issued loans  worth Sh10.6 billion to SMEs in the period under review.

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