Market challenges have not slowed us down—Joshua Oigara
In a year marked by high inflation, climate change risks, and a weakening Kenyan Shilling, Stanbic Bank has defied the odds, with net profits surging 34.2 percent to Kes12.16 billion from Kes9.06 billion in the preceding year.
Under Dr. Joshua Oigara, Chief Executive Officer of Stanbic Bank Kenya and South Sudan, the regional lender has posted strong growth, attributing the increase in net earnings to a steady rise in both interest income and non-funded income.
Despite the challenging economic environment, Stanbic Bank has seen notable expansion in key areas. Total assets increased by 14.9 percent to Kes459.3 billion, while loans and advances surged by 33.5 percent to Kes356.2 billion. Customer deposits also saw a 14 percent uptick to Kes347 billion.
Joseph Muganda, Chairman of the Board at Stanbic Holdings PLC, cited the bank’s proactive approach to addressing challenges such as inflation and geopolitical tensions.
Muganda highlighted the bank’s appreciation for the global economic landscape and its commitment to seizing emerging opportunities for growth.
During an investor briefing Wednesday, Dr. Oigara expressed confidence in the bank’s ability to navigate the prevailing market challenges.
Read also: February private sector activity rises highest in over a year
Increasing market share
He noted that the bank is focusing on increasing market share and fulfilling its purpose in line with its 2024-2026 strategic priorities.
The bank’s improved performance has led to a recommendation for an increase in dividend per share from Kes12.60 to Kes15.35, marking the highest-ever payout in the history of the lender.
Dr. Oigara highlighted the importance of a strong risk and control environment, engaged employees, and excellent client experience in achieving the bank’s goals in the months ahead.
In February, Standard Bank, the parent company of Stanbic Bank, completed the repayment of Kenya’s $1.5 billion Eurobond, which was originally expected to mature in June.
Dr. Oigara expressed pride in facilitating the Eurobond for Kenya, noting the demand witnessed from investors on the Eurobond was as a sign of growing confidence in East Africa’s biggest economy.
Patrick Mweheire, Regional Chief Executive – East Africa at Standard Bank Group, underscored the importance of public-private partnerships in unlocking regional growth.
Mweheire noted Stanbic’s commitment to driving economic progress in East Africa, particularly in growth sectors such as energy and agriculture.
As Stanbic looks ahead, Dr. Oigara says the bank is ready to capitalize on growth opportunities and evolve its organization through a reimagined strategy.
