Stanbic Bank has posted Sh9.1 billion net profit for the financial year ended December 2022 amid rising interest rate and easing losses from delinquent and bad debt.
While announcing the results yesterday, Stanbic ’s Chief financial and value officer Denis Musau said the bank achieved 26 per cent growth in profitability from the 7.2 billion last year, on improved liquidity and credit quality.
Revenue increased to Sh32.1 billion from Sh24.9 billion as deposits rose by 12 per cent to Sh272 billion, while customer loans and advances increased 27 per cent to Sh236 billion, pulling up the bank’s net interest income by 33 per cent.
Stanbic Kenya chief executive Joshua Oigara said that despite the uncertain and challenging operating environment last year, the business delivered strong results, thanks to focused execution across our strategic plan.
“The plan is anchored on catalytic growth pillars such as customer service excellence and technology integration to boost operating efficiencies,” he said.
As a result of the positive financial results, the bank has declared a total dividend payout of Sh4.98 billion, an amount Musau said was a 40 per cent more that the Sh3.56 billion shareholders received last year.
Currently, Stanbic bank’s share price on the Nairobi Securities Exchange (NSE) is trading at Sh106.
This comes amid a rising interest rates regime that threatens to wipe off the value of government securities in lender’s books across board and a volatile exchange rate that has seen the shilling’s value consistently depreciate, but Stanbic Bank Kenya Chief Executive Officer Joshua Oigara said they are well positioned to handle the risks. “Where there is a challenge, there is an opportunity,” Oigara said.
