Stanbic Bank has reported a Ksh. 3.3 billion net profit for the period ended 31st March 2025. This is a 16.6% drop in the profitability as compared to Ksh. 3.9 billion realized in a similar period last year.
The drop in profitability was due to a 27.2 decline in non-interest income to Ksh. 2.7 Billion. This was largely due to the fact that earnings from forex trading declined to Ksh. 977 Million down from Ksh. 2.3 Billion in March 2024. Interest income from loans also dropped to Ksh. 7.1 Billion down from Ksh. 9.2 Billion. This was due to a shrinking of its loan book by 4.6% to Ksh. 244 Billion.
Interest expense on customer deposits declined by 25% as cost of funding declined in the first quarter of the year, further creating a buffer on the revenue.
Stanbic Bank Kenya and South Sudan’s Chief Executive, Dr. Joshua Oigara, said, ‘’Our Q1 2025 results reflect the dynamic shifts within our operating environment, shaped by both local and global economic headwinds. We continue to assess these market dynamics and respond appropriately, leveraging our robust strategies and operational flexibility to maintain a strong foundation for future growth. Encouraging signs of continued economic recovery and stability, coupled with a clear strategic roadmap, position us well to navigate the year ahead in delivering long-term, sustainable value for our stakeholders. South Sudan has resumed oil production and exports via Sudan after repairs to the damaged pipeline, a move vital for the country’s financial stability. Our South Sudan business continues to demonstrate resilience leveraging the oil ecosystem to support our customer operations.”
In Q1, the Bank continued to focus on customer enablement, as well as cost and risk management which translated to a stronger credit impairment positioning and a low credit loss ratio of 1.19%. Customer numbers went up by 10% resulting in higher transaction volumes and increased fee and commission income.
Stanbic’s share price posted a 28% YoY growth during the period while Year on Year market capitalization grew by 26% to KES 63.9 billion as at 31st March 2025.
The Bank continued to stimulate growth in the economy through investment in key growth sectors and market segments. By the end of March 2025, the Bank had disbursed KES 8.14 billion to SMEs, with KES 1.7 billion channeled to businesses in the Africa China corridor. The Bank also implemented capacity building and funding programs through the Stanbic Foundation, with over 796 beneficiaries receiving catalytic funding.
Stanbic reduced its base lending rates by 180bps cumulatively in line with the Central Bank of Kenya’s (CBK) drive to spur private sector credit growth in the economy. The Bank’s blended rate has declined by 480bps over the last 6 months.