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Stanbic Holdings registered a 34 per cent growth rate in its financial results for the year ended December 31, 2023. The Group reported a net profit of Sh12.2 billion from Sh9.1 billion in 2022.  

The group also declared a final dividend of Sh14.20 per share, bringing the total dividend payout for the year to Sh15.35 per share, a 22 per cent increase from Sh12.60 in 2022 equivalent to Sh6 billion, in what will also mark the highest-ever payout in the lender’s history.

Denis Musau, the bank’s chief finance and value officer for Kenya and South Sudan said the growth was driven by strong performance in net interest income and non-interest income.

Interest income

In the review period, interest income, a measure of earnings from its core business of lending, rose by 35 per cent to Sh25.6 billion from Sh18.9 billion.

On the other hand, non-interest revenue, which includes income from fees, commissions, and forex transactions rose by 19 per cent from Sh13.1 billion in 2022 to Sh15.7 billion. This raised the lender’s total income to Sh41.3 billion from the previous year’s Sh32 billion.

Credit impairment charges increased by 26 per cent to Sh6.2 billion from Sh4.9 billion, reflecting the continuing impact of the Covid-19 pandemic on the quality of the loan portfolio. The group managed to increase its income, after impairment charges, to Sh35.1 billion from Sh27.1 billion, pointing to effective risk management strategies and lending practices.

Total operating expenses increased by 20.2 per cent to Sh18 billion from Sh14.9 billion, mainly due to higher staff costs and depreciation charges but through efficient cost management and operational efficiency, the bank was able to increase its profit before tax to Sh17.1 billion from Sh12.2 billion.

This was in addition to an increase in income tax expense from Sh3.1 billion to Sh4.9 billion, reflecting its higher profits.

The group’s balance sheet expanded by 15 per cent to Sh459.3 billion, driven by a 33 per cent growth in loans and advances to banks and customers, which reached Sh356.2 billion.

Deposits from banks and customers also grew by 14 per cent to Sh347.2 billion, while the capital adequacy ratio remained above the regulatory minimum at 18.9 per cent.