Stanbic Holdings posts 2 per cent rise in half-year profit to Sh7.2 billion

Stanbic Holdings Plc has reported a resilient performance for the first half of 2024, with profit after tax rising marginally by two per cent to Sh7.2 billion.

The lender attributed this modest growth to improved net interest income and a substantial 30 per cent expansion of its balance sheet.

Despite a challenging operating environment characterised by economic headwinds, Stanbic Holdings demonstrated its capacity to weather the storm.

"While Kenya and the region presented a broadly positive economic outlook, the first half of the year was a mixed bag," said Joshua Oigara, the bank's chief executive.

"Severe floods and subsequent civil unrest disrupted economic activities, necessitating significant recovery efforts."

Oigara credited the bank's steadfast execution of its newly reimagined three-year growth strategy for the positive financial results.

"We remain unwavering in our commitment to delivering exceptional value to our clients, shareholders, and partners," he added.

The bank's financial performance was underpinned by a four percent growth in net interest income to Sh12.6 billion, driven by increased lending and higher asset yields.

Operating costs were reduced by seven per cent, primarily due to the base effect of the previous year's investments in customer experience and favourable foreign exchange movements.

Customer deposits surged by 39 per cent to Sh360 billion, reflecting growing confidence in the bank.

While the Non-Performing Loans (NPL) ratio closed at 9.4 percent, credit impairment charges declined by 22 percent due to improved portfolio quality and robust risk management practices.

Return on equity (ROE) strengthened to 21 per cent, indicating the bank's commitment to delivering incremental returns for shareholders

Stanbic Kenya Foundation also made significant strides in its impact initiatives.

The launch of the 'Future Ni Digital Skills' programme in partnership with American Towers Company and Microsoft Corporation is expected to benefit over 10,000 individuals.

Additionally, the Foundation's support for SMEs, particularly women, youth, and individuals with disabilities, has been instrumental in driving economic empowerment.

The bank's commitment to sustainable finance was evident in the disbursement of over Sh54 billion in loans to key sectors, including agriculture, SMEs, and industrial establishments.

As Stanbic Holdings navigates the complexities of the operating environment, its focus on delivering value to clients, shareholders, and the community remains steadfast.