Stanbic Holdings Plc registered a slight increase in net profit for the first half of 2024, reaching KES 7.2 billion from KES 7.1 billion in the same period last year.
This growth was primarily driven by a combination of increased net interest income and reduced operating expenses.
However, a decline in non-interest income tempered the overall profit increase.
The company’s customer base expanded by 18% reaching 284,555 customers. While customer loans decreased slightly by 2.4%, deposits grew by a substantial 39%.
“Despite a broadly positive economic outlook in Kenya and the region, the first half of 2024 was a mixed economic landscape. The appreciation of the Kenya Shilling against the Dollar bolstered foreign exchange reserves and provided some economic stability,’’ Stanbic Bank Kenya & South Sudan, chief executive – Joshua Oigara said.
”However, severe floods in between March to May, caused extensive damage to infrastructure, agriculture, and homes, disrupting economic activities and necessitating substantial recovery efforts. Additionally, the latter part of the half was characterized by civil protests.’’
Key highlights from the financial results
- Profit Growth: Net profit increased by 2.3% year-on-year.
- Net Interest Income: Rose slightly due to higher lending and asset yields.
- Operating Expenses: Decreased due to base effects and cost-saving measures.
- Non-Interest Income: Declined, impacting overall profitability.
- Customer Base: Expanded by 18%.
- Loans and Deposits: Customer loans decreased slightly, while deposits grew significantly.
- South Sudan Subsidiary: Recorded a substantial increase in profit.
- Stanbic Bank Assurance: Achieved a 20% profit growth.
- Dividend Declaration: An interim dividend of KSh 1.84 per share was declared.
