Stanbic Bank has announced a Ksh 10.1 billion profit after tax for the nine-month period ended September 30, 2024.
- The Bank with operations in Kenya and South Sudan, attributed the 9% year on year growth in profitability to improved net interest income driven by 12% balance sheet growth to Kes 463 billion.
- During the period under review, the bank’s net interest income grew by 5 per cent to Kes18.9 billion on the back of growth in the average lending book and higher assets yield.
- Non-interest income reduced by 18% on account of significant non-repeated transactions in the 2023 base as well as contraction of trading margins, alleviated by increased client activity.
Operating costs decreased by 5% on harnessing previous investments aimed at improving client experience and foreign exchange gains from the appreciation of the Kenya Shilling.
Credit Impairment charges decreased by 40% to 2.7 billion attributable to judicious credit risk management, improved recoveries and impact of the Kenya shilling appreciation in early 2024 while customer deposits rose by 7% to Kes 328 billion as the Bank judiciously balanced funding requirements and balance sheet yield optimisation.
“We are navigating a challenging macroeconomic environment characterized by slower economic growth in the second half of 2024 amid easing inflation. These complexities have undoubtedly posed significant pressures on the financial sector, from deceleration in credit to the private sector to constrained consumer spending,” Stanbic Bank Kenya and South Sudan Chief Executive, Joshua Oigara.
“However, our Bank demonstrated remarkable resilience in the first nine months of the year by registering growth both in our Kenya and South Sudan operations. Our diversified portfolio, and commitment to targeted solutions enabled us to deliver sustained value for our clients, partners and shareholders,”he said .
