Stanbic Bank Profits Drop by 16.6% in Q1 2025

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Stanbic Bank Kenya has reported a 16.6% decline in its net profit for Q1 2025, with earnings falling to KSh 3.33 billion from KSh 3.99 billion in the same period last year.

Stanbic Bank Profits Drop by 16.6% in Q1 2025

The dip in profits was attributed to reduced lending activity and a sharp fall in foreign exchange income, despite the lender maintaining strong capital and liquidity levels.

Stanbic Bank, known for being the first lender in Kenya to release its quarterly results, saw total operating income slide by 7% year-on-year to KSh 9.54 billion. The bank’s non-interest income, which includes fees, commissions, and forex trading, plummeted by 27% to KSh 2.76 billion.

The bank’s total assets declined by 8.4% to KSh 450.1 billion, while its loan book shrank by 4.6% to KSh 244 billion. Customer deposits also contracted, down 5% to KSh 337.6 billion.

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Interest income dropped by 8.9% to KSh 11 billion, mainly due to lower returns from loans and advances. However, net interest income remained relatively flat at KSh 6.78 billion, thanks to higher income from government securities.

Notably, Stanbic Holdings nearly doubled its investment in government securities to KSh 81 billion in Q1 2025, up from KSh 42.1 billion a year earlier, the highest in five years. This helped cushion the impact of declining interest income from core lending.

Stanbic Bank Profits Drop by 16.6% in Q1 2025

Despite the earnings pressure, Stanbic’s Bank capital adequacy ratio stood at 18.6%, well above the Central Bank of Kenya’s regulatory threshold of 14.5%. The liquidity ratio remained strong at 48.3%, more than double the statutory requirement of 20%.

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Gross non-performing loans (NPLs) dropped by 5.3% to KSh 22.94 billion. After provisioning, net NPLs stood at KSh 4.40 billion. The bank’s off-balance sheet exposures also fell to KSh 146.6 billion from KSh 189.5 billion, driven by lower exposure to derivatives and trade-related guarantees.

Commenting on the results, Dr. Joshua Oigara, Chief Executive, Stanbic Bank Kenya and South Sudan, said, “Our performance demonstrates tenacity and a strong underlying business. We continue to leverage our robust strategies and operational flexibility to maintain a strong foundation for future growth.”

Dennis Musau, Chief Financial & Value Officer, added, “We remain focused on partnering with customers, strengthening stakeholder relationships, and delivering sustainable, long-term value.”

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.