Stanbic Bank reported a profit after tax of KShs. 3.9 billion for the first quarter ended 31st March 2023, an 84% increase in earnings.
This was attributed to strong revenue growth across all business segments and a robust balance sheet.
The bank’s Chief Executive for Kenya and South Sudan, Joshua Oigara, attributed the positive results to the successful execution of the bank’s three-year medium-term strategy, which began in 2021.
Revenue grew by 65% to KShs. 11 billion, driven by balance sheet growth, fees income from client services, and trading income from financial intermediation.
Customer deposits increased by 24% to KShs 291 billion and customer loans rose by 12% to KShs 230 billion at the end of the first quarter.
|Balance Sheet||Q1’2022||Q1’2023||y/y change|
|Net Loans and Advances||206.5||230.3||11.5%|
|Deposits Per Branch||9.0||9.7||7.3%|
|Income Statement||Q1’2022||Q1’2023||y/y change|
|Net interest Income||3.7||5.4||44.7%|
|Net non-interest income||3.0||5.7||89.3%|
|Total Operating income||6.8||11.2||64.7%|
|Loan loss provision||(0.5)||(1.1)||132.9%|
|Total Operating expenses||(3.8)||(5.7)||47.0%|
|Profit before tax||2.9||5.5||87.8%|
|Profit after tax||2.1||3.9||84.3%|
Dennis Musau, Stanbic Bank‘s Chief Financial and Value Officer, noted that the bank recorded strong growth momentum in all revenue lines, driven by its efforts to implement its strategy, manage costs, and drive operational efficiencies.
As a result, the bank’s cost-to-income ratio decreased to 40.5% compared to 49.6% in the prior period, and the return on equity improved to 21.7% from 17.6% in the same period in 2022.
From Financial Products, Here’s How Stanbic Bank is Driving Kenya’s Growth