Stanbic Bank has reported a profit after tax of KShs. 3.9 billion for the first quarter ended 31st March 2023. This marks an 84% increase in earnings, which the bank attributes to strong revenue growth across all business segments and a robust balance sheet.
The bank’s Chief Executive for Kenya and South Sudan, Joshua Oigara, attributed the positive results to the successful execution of the bank’s three-year medium-term strategy, which began in 2021.
Revenue grew by 65% to KShs. 11 billion, driven by balance sheet growth, fees income from client services, and trading income from financial intermediation. Notably, the bank, in collaboration with SBG Securities Ltd, completed a significant transaction resulting in the largest trade in the history of the Nairobi Securities Exchange (NSE).
Customer deposits increased by 24% to KShs. 291 billion as customer loans rose by 12% to KShs. 230 billion at the end of the first quarter.
Dennis Musau, Stanbic Bank‘s Chief Financial and Value Officer, noted that the bank recorded strong growth momentum in all revenue lines, driven by its efforts to implement its strategy, manage costs, and drive operational efficiencies. As a result, the bank’s cost to income ratio decreased to 40.5% compared to 49.6% in the prior period, and the return on equity improved to 21.7% from 17.6% in the same period last year.
Furthermore, the bank noted that by the end of March 2023, it had trained over 900 MSMEs on business resilience and digital capabilities, while another 400 MSMEs received training in financial literacy. In the first quarter, the bank issued loans worth KShs. 10.6 billion to SMEs.