Stanbic's Q3 Profit Dips 7.5% to 9.38Bn on Lower Non-Funded Revenue

Stanbic Bank Kenya has reported a softer financial performance for the third quarter, with a 7.47% decline in profit after tax to KSh 9.384 billion.

• •This earnings pressure was primarily driven by a significant downturn in non-interest revenue.
• •The bank's profitability was challenged by a sharp 24.54% contraction in non-funded income, which fell to KSh 7.820 billion.
• •This was attributed to subdued performance in both fees and trading revenue throughout the quarter.

While net interest income provided a partial buffer—growing 8.02% to KSh 20.507 billion on the back of an expanded loan book and improved yields—it was not enough to fully offset the decline elsewhere. Consequently, overall operating income still fell by 3.48% to KSh 28.327 billion.

On the operational front, expenses edged 0.87% higher to KSh 15.431 billion, influenced by increased investment in staff and technology.

However, a positive development was a 6.58% reduction in loan loss provisions to KSh 2.505 billion, reflecting an improvement in asset quality. This was underscored by an 8.25% decrease in gross non-performing loans (NPLs) to KSh 22.760 billion, indicating continued clean-up efforts across key lending segments.

The loan book expanded by 15.72% to KSh 253.144 billion, while customer deposits rose 4.88% to KSh 343.854 billion. Total assets increased by 2.95% to KSh 476.207 billion, and shareholder equity strengthened by 7.11% to KSh 65.905 billion.

The cumulative effect of these results was a decline in earnings per share (EPS) to KSh 55.01, down from KSh 59.46 in the same period last year.