Stanbic Bank has reported a Ksh. 7.1 profit after tax for the half-year period ended June 2023. This represented a 47% increase in profitability from the Ksh. 4.8 Billion reported in a similar period last year.
This rise in profitability was attributed to a strong revenue and balance sheet growth. The group’s total income rose by 37.5 percent to Sh20.9 billion as net interest income grew faster than non-funded income at 44.5 percent to Sh12 billion.
Stanbic Holdings was forced to double its credit impairment charges to Sh2.4 billion from Sh1.2 billion previously on the adverse assessment of some of its corporate borrowers.
Customer deposits increased by 10% to stand at KES 259 billion, while loan and advances to customers grew by 12% to close at KES 244 billion, highlighting the Bank’s commitment to supporting economic growth and development.
With a diversified portfolio of corporate & investment banking, business, commercial and retail banking financial solutions, the Group continued to focus on its key sectors including trade, consumer, power infrastructure and SMEs in Kenya and South Sudan.
Stanbic Kenya and South Sudan’s Chief Executive, Dr Joshua Oigara, said, “Our business delivered strong results despite challenging market and geopolitical dynamics all of which caused monetary and fiscal pressure. Leveraging on our core capabilities and market segments, we seized opportunities and navigated macro and micro challenges, sustaining growth in our Kenya and South Sudan businesses. We remain committed to delivering superior value to our clients, shareholders, and partners, who continue to drive our performance. We are pleased to declare a Kes 1.15 dividend per share for our shareholders.‘’
The company resumed paying interim dividends with its board recommending the payment of Sh1.15 per share by September 27 to shareholders on its books as of September 4.