Stanbic Holdings Plc has released its full-year 2022 financial results, revealing a strong performance across all revenue lines. Despite the challenges faced in the market, the bank achieved a significant balance sheet growth and increased shareholder return.
Stanbic Kenya and South Sudan’s Chief Executive, Mr. Joshua Oigara said the firm’s strategic plan formulated and adopted three years ago continues to facilitate growth and organizational resilience. He noted that the strategic plan founded on digital innovations for service delivery, enhanced consumer experience and increased operating efficiencies had translated to an accelerated balance sheet growth.
“Despite the uncertain and challenging operating environment last year, the business delivered strong results, thanks to focused execution across our strategic plan. The plan is anchored on catalytic growth pillars such as customer service excellence and technology integration to boost operating efficiencies. We can see the payoff whilst providing a good launchpad for the next three-year strategy to be unveiled later this year,” Oigara said.
Stanbic income statement highlights
The bank’s income statement highlights showed a double-digit growth in key balance sheet metrics, with revenue increasing by 28% from Ksh 24.9 billion to Ksh 32.1 billion. Profit after tax was up 26% from Ksh 7.2 billion to Ksh 9.1 billion, while the return on equity increased from 13.3% in 2021 to 15.3%. Additionally, the bank declared a dividend per share of Ksh 12.60, representing a 40% increase from the previous year.
The bank’s cost to income ratio also improved, declining from 50.9% in 2021 to 46.7% in 2022. Earnings per share also increased by 26% to Ksh 22.92 compared to Ksh 18.23 in 2021.
Stanbic balance sheet
On the balance sheet front, the bank’s total assets grew by 22% to Ksh 400 billion from Ksh 329 billion in 2021. The non-performing loans ratio declined by 18 basis points from 9.25% to 9.07%, while customer loans increased by 27% from Ksh 185 billion in 2021 to Ksh 236 billion. The bank’s liquidity ratio stood at 45.2% in full-year 2022 against an industry average of 20%. Customer deposits also increased by 12% from Ksh 242 billion in 2021 to Ksh 272 billion in 2022. Additionally, the total capital ratio in 2022 was 16.8% against a statutory minimum of 14.5%.
The bank’s regional performance was also impressive, with Stanbic Bank Kenya’s profit after tax increasing by 29% to Ksh 8.8 billion. Stanbic South Sudan’s profit after tax was up 21% to Ksh 307 million, while the bancassurance business saw a 125% increase in profit after tax to Ksh 111 million.
Stanbic Holdings Chief Financial and Value Officer Mr. Dennis Musau noted that the significant progress on its strategic plan and requisite measures made by the Bank over time have cumulatively contributed to its strong growth momentum.
“Over time, we have made investments to drive faster customer acquisition, efficient and convenient service and internal operational efficiency. The outcome of these efforts is evident in our Cost to Income ratio which reduced from 50.9% in 2021 to 46.7% in 2022, boosting our Return on Equity to 15.3%, up from 13.3% in 2021.” said Mr. Musau.
“Along the same grain of customer focused investments, as the East African region continues to thrive as one of the fastest growing regions on the continent, Stanbic launched borderless banking in 2022 which enables customers to transact seamlessly and real-time across Kenya, Uganda, Tanzania and South Sudan. To date, this platform has facilitated more than USD 800M worth of transactions across the countries and contributed non-funded revenue to the bank” Musau added.
ALSO READ; Joshua Oigara Takes Over as CEO of Stanbic Bank Kenya
