NAIROBI, Kenya, March 5, 2025
Stanbic Holdings Plc has posted a 13% increase in profit after tax to KES 13.7 billion for the financial year ending December 31, 2024. This growth comes despite a decline in total income, reflecting the bank’s strong cost management and lower credit impairment charges. The Group’s interest income surged by 27%, rising from KES 37.9 billion to KES 48.2 billion, driven by a higher-yielding asset book and investment portfolio. However, this was offset by a 93% rise in interest expenses, leading to a 5% decline in net interest income. Non-interest revenue dipped slightly by 1.7%, mainly due to narrower margins and the absence of a one-off major transaction recorded in 2023, but this was balanced by higher trading and transaction volumes.
For shareholders, 2024 was a rewarding year. Earnings per share increased by 13%, while Return on Equity (RoE) improved by 70 basis points, reflecting the bank’s consistent focus on delivering value. In a move that will excite investors, Stanbic’s Board of Directors proposed a dividend of KES 20.74 per share, marking a 35% increase from the previous year’s KES 15.35. This significant growth highlights the bank’s confidence in its profitability and future outlook.
Dr. Joshua Oigara, Chief Executive of Stanbic Bank Kenya and South Sudan, attributed the performance to strategic investments in technology, talent, and innovative business solutions. He emphasized that the bank’s commitment to long-term, sustainable growth remains firm, ensuring that clients, shareholders, and stakeholders continue to benefit from its success. Throughout 2024, the bank upgraded its core banking system, enhanced mobile banking platforms, and launched a new asset management business, alongside an improved Private Banking and SME offering, all aimed at enhancing customer experience and market competitiveness.
A key focus for Stanbic in 2024 was ensuring that customers were not overburdened by rising credit costs. Dennis Musau, Chief Financial and Value Officer, explained that the bank chose not to pass the full impact of higher funding costs onto borrowers, a move that helped grow lending volumes while keeping credit defaults and impairments below industry levels. Additionally, Stanbic reduced its overall operating costs by 2%, showcasing its efficiency and financial discipline.
Beyond financial performance, Stanbic deepened its commitment to sustainability, making meaningful progress across four key areas: Enterprise Growth and Job Creation, Infrastructure Development and Just Energy Transition, Climate Change Mitigation and Adaptation, and Financial Inclusion. The bank provided KES 63 million in concessionary funding to MSMEs through grants and catalytic funding, invested KES 9 billion in infrastructure projects, and directed 5% of its total lending towards green financing. Additionally, Stanbic facilitated trade worth KES 76 billion, with 9% of its loan book dedicated to supporting agriculture, a critical sector for Kenya’s economy.
On the environmental front, Stanbic implemented rigorous ESG initiatives, including screening 266 clients for environmental and social risks, recycling 99.92% of its waste, and reducing energy costs by 4%. These efforts align with its broader goal of creating a more sustainable and responsible financial ecosystem.
Despite the economic challenges in South Sudan, where oil production declined due to the Sudan conflict, Stanbic’s South Sudan branch remained profitable, posting KES 176 million in after-tax profit. Meanwhile, the bank’s new asset management business gained strong traction, securing KES 2.45 billion in Assets Under Management (AUM) within just six months. Subsidiaries SBG Securities Limited and Stanbic Bancassurance Intermediary Limited also delivered positive results, reporting KES 20 million and KES 174 million in profit after tax, respectively.
Stanbic’s strong financial management and operational efficiency earned it further recognition. In November 2024, Fitch Ratings reaffirmed Stanbic Bank Kenya Limited’s Long-Term Issuer Default Rating (IDR) at ‘B’ with a Stable Outlook, underscoring its sound risk management and financial stability. The bank was also widely recognized for its excellence, winning Best Private Bank in Kenya (Global Finance), Best FX Bank in Kenya (Euromoney), and Best Investment Bank in Kenya (EMEA Finance Africa Banking Awards), among other accolades.
With a stable balance sheet, strategic investments in technology, and a strong commitment to sustainability, Stanbic Holdings is well-positioned for long-term growth. As the bank continues to innovate, expand its customer offerings, and drive positive change in Kenya and South Sudan, it remains a key player in shaping the future of the financial sector. For shareholders, customers, and the wider community, Stanbic’s success is a testament to its resilience, vision, and unwavering commitment to progress.
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