Stanbic Bank Kenya Reports Ksh 10.14bn Net Profit for Q3 2024

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Stanbic Bank Kenya has announced a net profit of Ksh 10.14 billion for the third quarter of 2024, marking a 9.26% year-on-year increase. This was achieved despite a tough macroeconomic landscape, defined by slower economic growth in the latter part of 2024.

Stanbic Bank Kenya total assets grew by 11.66% to Ksh 462.55 billion, while customer deposits increased by 7.26% to Ksh 327.85 billion.

However, customer loans saw a decline of 12.84%, falling to Ksh 218.76 billion. The bank’s loan-to-deposit ratio stood at 66.73%, reflecting a cautious approach in lending. However, gross non-performing loans (NPLs) increased by 3.2%, totaling Ksh 24.81 billion, compared to Ksh 24.05 billion in Q3 2023.

In terms of revenue, Stanbic Bank Kenya reported a 4.5% drop to Ksh 29.35 billion, driven by a significant 17.8% decline in non-interest income, which amounted to Ksh 10.36 billion. Net interest income, on the other hand, rose by 4.8%, reaching Ksh 18.98 billion.

While loan loss provisions decreased by 40.2% to Ksh 2.68 billion, the bank’s gross non-performing loans rose by 3.2%, totaling Ksh 24.81 billion. The bank’s cost-to-income ratio stood at a solid 42.9%, reflecting efficient cost management.

Read: KCB Group Records 49% Growth in Net Profit to KSh 45.8 Billion in Q3 2024

Joshua Oigara, CEO of Stanbic Bank Kenya and South Sudan, attributed the bank’s performance to its ability to navigate a complex economic landscape.

“We are navigating a challenging macroeconomic environment characterized by slower economic growth in the second half of 2024 amid easing inflation. These complexities have undoubtedly posed significant pressures on the financial sector, from deceleration in credit to the private sector to constrained consumer spending,” he said.

“However, our Bank demonstrated remarkable resilience in the first nine months of the year by registering growth both in our Kenya and South Sudan operations. Our diversified portfolio, and commitment to targeted solutions enabled us to deliver sustained value for our clients, partners and shareholders.” he added.

Dennis Musau, Chief Financial and Value Officer at Stanbic Bank Kenya, highlighted the bank’s strategic investments in people, technology, and tailored products as key drivers of its operational efficiency.

“Our results reflect the Bank’s balanced approach to navigating a dynamic operating environment. Strategic management of the balance sheet mix has enabled us to cushion against macroeconomic shifts while positioning the Bank for sustainable growth amidst shifting macroeconomic factors.” he noted.