Stanbic Bank Kenya Limited, a subsidiary of the Standard Bank Group, has announced a net profit of KSh 9.3 billion for the first nine months of 2023, a 33% increase from KSh 6.9 billion in the same period of 2022.
The bank attributed its strong performance to its ability to leverage emerging market opportunities and offer innovative solutions to its customers.
“Our performance reflects our ability to take advantage of emerging market opportunities,” Dr. Joshua Oigara, CEO of Stanbic Bank Kenya & South Sudan, said. “We have continued to invest in our digital platforms, enhance our customer experience, and support our clients across various sectors, especially in the areas of infrastructure, energy, and agriculture.”
According to the bank’s unaudited financial statements, its pre-tax profit rose to KSh 12.9 billion in Q3 2023 from KSh 9.7 billion in Q3 2022, while its total income grew to KSh 38.7 billion from KSh 27.9 billion.
The bank’s balance sheet size expanded to KSh 414.3 billion in Q3 2023 from KSh 371.4 billion in Q3 2022, driven by growth in loans and deposits.
The bank’s loan book increased to KSh 250.9 billion from KSh 236.9 billion, while its customer deposits grew to KSh 305.6 billion from KSh 267.3 billion.
The bank’s interest income from loans and advances rose to KSh 20.2 billion from KSh 13.4 billion, while its interest income from government securities increased to KSh 3.9 billion from KSh 3.5 billion.
The bank’s total interest income from loans, government securities, and deposits with other banks grew to KSh 26.1 billion in Q3 2023 from KSh 17.6 billion in Q3 2022.
The bank’s non-interest income from fees and commissions, foreign exchange trading, dividend income, and other sources grew to KSh 12.6 billion in Q3 2023 from KSh 10.3 billion in Q3 2022.
The bank increased its loan loss provisions to KSh 4.5 billion in Q3 2023 from KSh 2.9 billion in Q3 2022, reflecting the impact of the COVID-19 pandemic on some of its customers.
However, the bank also reduced its gross non-performing loans to KSh 18.9 billion in Q3 2023 from KSh 20.5 billion in Q3 2022, indicating an improvement in its asset quality.
The bank’s capital and liquidity ratios remained above the regulatory requirements, with a total capital adequacy ratio of 18.8% and a liquidity ratio of 49.7% as at September 30, 2023.
| Balance Sheet (Kshs bn) | Q3’2022 | Q3’2023 | y/y change |
| Net Loans and Advances | 236.9 | 251.0 | 5.9% |
| Government Securities | 63.0 | 37.0 | (41.3%) |
| Total Assets | 371.4 | 414.3 | 11.5% |
| Customer Deposits | 267.3 | 305.7 | 14.3% |
| Deposits Per Branch | 10.3 | 10.2 | (0.9%) |
| Total Liabilities | 321.0 | 358.6 | 11.7% |
| Shareholder’s Funds | 50.4 | 55.7 | 10.5% |
| Income Statement (Kshs bn) | Q3’2022 | Q3’2023 | y/y change |
| Net interest Income | 12.7 | 18.1 | 42.4% |
| Net non-interest income | 10.3 | 12.6 | 23.0% |
| Total Operating income | 23.0 | 30.7 | 33.7% |
| Loan loss provision | (2.9) | (4.5) | 56.8% |
| Total Operating expenses | (13.3) | (17.8) | 33.6% |
| Profit before tax | 9.7 | 13.0 | 34.0% |
| Profit after tax | 7.0 | 9.3 | 32.7% |
| Core EPS (Kshs) | 17.7 | 23.5 | 32.7% |
The bank is listed on the Nairobi Securities Exchange (NSE) and trades under the symbol SBK.
The bank’s share price closed at KSh 105.00 on Thursday, November 23, 2023, recording a 2.9% gain over its previous closing price of KSh 102.00.
The bank started the year with a share price of KSh 102.00 and has since gained 2.94% on that price valuation, ranking it 19th on the NSE in terms of year-to-date performance.
The bank has a market capitalization of KSh 67.9 billion and a price-to-earnings ratio of 9.7 as at November 23, 2023.
The bank’s board of directors has not declared any dividend for the nine months ended September 30, 2023.
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