Stanbic’s first-quarter profit up 85 percent to Sh3.9 billion
Lender Stanbic Bank first quarter profit has increased by 85.2 percent to Kes3.89 billion from Kes2.1 billion in the comparable quarter last year on higher income.
The listed financial service provider attributed the increase in its three-month earnings to strong growth in revenue across all business segments and strong balance sheet growth.
In the three months to March, the bank’s total operating income hit Kes11.2 billion from Kes6.8 billion reported in a similar period last year. The bank cited fees income from client services and trading income from financial intermediation. In particular, Stanbic Bank, in conjunction with SBG Securities Ltd, successfully completed a significant transaction that resulted in the execution of the largest trade in the history of the Nairobi Securities Exchange (NSE).
Stanbic Bank Kenya and South Sudan’s CEO Joshua Oigara said, “During the quarter, the Bank remained focused on executing its three-year medium-term strategy that started in 2021. The outcomes demonstrate our ability to create shared value and sustainable returns for shareholders and multiple stakeholders”.
Financial disclosures show that non-funded income increased fastest at a record 90 percent to close the period at Kes5.7 billion while net interest income hit Kes5.4 billion from Kes3.7 billion previously.
In the quarter, customer deposits increased by 24 percent to stand at Kes291 billion signifying the customer’s continued confidence in the bank while customer loans rose by 12 percent to close at Kes230 billion at March 31.
Stanbic Bank’s Chief Financial and Value Officer Dennis Musau noted strong growth momentum in all revenue lines.
“Our accelerated efforts in implementing our strategy, driving operational efficiencies, and managing costs have seen us progressively manage our cost to income ratio downwards to stand at 40.5 percent compared to 49.6 percent in prior period. As a result, return on equity in the period under review improved to 21.7 percent from 17.6 percent reported in the same period last year.”
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The Bank continued to prioritize the value and sustainable growth of Micro, Small, and Medium-sized businesses across various counties including Uasin Gishu, Nakuru, Kisumu and Laikipia. By the end of March 2023, the Bank trained over 900 MSMEs on business resilience and digital capabilities, while another 400 MSMEsreceived training in honing their financial literacy skills.
The Bank also issued loans worth Kes10.6 billion to SMEs in the first quarter. Stanbic Bank was recognized for its Dare to Aspire Dare to Achieve (D.A.D.A) women proposition and the lender’s participation in the Sourcing2Equal Kenya (S2E) initiative.