Shareholders at Stanbic Bank Holdings will walk home with an extra Sh5 in dividend payout after the lender reported a 13 per cent increase in net earnings for the year ended December 31, 2024, despite a drop in revenue.
The dividend payout increased by 35 per cent to Sh20.74 per share, up from Sh15.35 per share in 2023.
Speaking at the investor briefing in Nairobi on Wednesday, the bank’s chief executive, Joshua Oigara, attributed the Sh13.7 billion net profit to investments in technology, talent, and innovative business strategies.
According to Oigara, lower operational costs and reduced credit impairment charges also played a huge role.
“We had a robust performance in 2024, fuelled by our ongoing focus on platforms, solutions, and processes that drive business growth while maximizing value for our stakeholders,’’ Oigara said.
The Group posted a 27 per cent rise in interest income from Sh37.9 billion to Sh48.2 billion in the year under review on the back of a higher-yielding asset book and investment portfolio.
This was, however, moderated by a 93 per cent rise in interest expense that translated to a five percent decline in Net interest income.
During the reporting period, non-interest revenue decreased by 1.7 percent due to narrowed margins and the impact of a one-off significant transaction in 2023.
This was however compensated by higher trading and transactional volumes. This resulted in a 3.8 per cent drop in total income.
Earnings per share increased by 13 per cent, while Return on Equity increased by 70 basis points driven by improved profitability in the year, affirming the Group’s focus on delivering value to its shareholders.
The balance sheet remained largely stable, rising by 12 per cent, a reflection of the Group’s balanced approach to growth while managing market dynamics.
The bank’s chief finance officer Dennis Musau affirmed the Group’s resilience and strength amid dynamic market movements, highlighting woes at its South Sudan branch, which faced unique challenges given the reduction in oil production in the country because of the Sudan war.
Despite this, the Branch registered a Sh176 million profit after tax.
The newly launched asset management business registered Sh2.45 billion in assets under management (AUMs) in the first six months since launch, demonstrating the segment’s viability and strategic posture into the future.
The Group’s subsidiaries, namely SBG Securities Limited and Stanbic Bancassurance Intermediary Limited, recorded a profit after tax of Sh20 million and m and Sh174 million, respectively.
“We deliberately shielded our customers from high credit costs by not passing the entire impact of rising funding costs to them. This helped not only grow our average lending through the period but also keep credit defaults and impairments below industry levels.”
On ESG stewardship, the bank screened 266 clients for environmental and social risks, recycled 99.92 per cent of its waste, cut energy costs by four, and processed 85per cent of transactions digitally.
