Kenya: Stanbic bank’s profit rises by 37% in first half of 2022

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  • Stanbic Holdings Plc has announced a profit of KSh 4.8 billion for the half year ended 30 June 2022, representing a 37 per cent increase from last year’s performance
  • The performance is attributable to strong business momentum, and judicious execution of its digital transformation strategy as the Group continues to support its customers in their growth journeys
  • Stanbic Bank CEO Charles Mudiwa said the performance reflects resilience amidst a tough operating environment characterised by uncertainties around elections and risks posed by the Russia-Ukraine conflict

Stanbic Holdings Plc has announced a profit of KSh 4.8 billion for the half year ended 30 June 2022, representing a 37 per cent increase from last year’s performance.

According to the Kenyan lender, the performance is attributable to strong business momentum, and judicious execution of its digital transformation strategy as the Group continues to support its customers in their growth journeys.

Stanbic Bank CEO Charles Mudiwa said the performance reflects resilience amidst a tough operating environment characterised by uncertainties around elections, risks posed by the Russia-Ukraine conflict, rising inflation, currency pressures and the global resurgence of Covid-19 variants.

Mudiwa said the bank’s focus has been on supporting its customers and driving sustainable business growth in a challenging operating environment.

“We are glad to have achieved this objective courtesy of our dedicated team and strong partnerships with our customers. Our future-ready digital transformation journey continues to simplify and enhance our customers’ banking experience”.

Looking at the institution’s strategy, Stanbic focused on various solutions that have improved client experience while driving scale.

The solutions range from the ease and convenience created by their digital customer onboarding solution and the flexibility to access instant credit, among others. This drove digital penetration, with over 90 per cent of new accounts being opened digitally and 39 per cent increase in the number of active customers.

The group’s customer loans went up by 31 per cent to KSh 217 billion in the reporting period, signalling its unwavering support to its customers to help them grow and realise their full potential.

Net interest income was up by 21 per cent over the same period last year, driven by growth in the lending book across all the business segments, improved margins and funding cost management.

Strong performance in non-interest revenue resulted from successful closure of key deals in Investment Banking, continuous strategic focus on leveraging digital platforms to innovatively deliver bespoke financial solutions to the different customer segments and improved trading revenue.

Credit quality improved, evidenced by a reduction in the credit loss ratio to 1.1 per cent in the first half of 2022 from 1.64 per cent in the first half of 2021.

Stanbic holdings. Photo: File.

Stanbic also signed several partnership agreements with various stakeholders centred around the socio-economic development in the country.

Stanbic also partnered with Microsoft Kenya and the Ministry of Trade and Industrialisation through the Stanbic Kenya Foundation to support over 50,000 individuals and Micro, Small, and Medium Enterprises (MSMEs) by providing capacity building and equipping them with digital and business skills through the FutureNiDigital program.

It further partnered with United States African Development Foundation (USADF) to provide grants amounting to KSh 37.9 million to MSMEs, cooperatives, and producer groups in Kenya. Stanbic also donated 131 computers in counties to support digital skills training that will help SMEs and MSMEs upskill themselves and be able to position their businesses better.

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As part of the Group’s health efforts, Stanbic partnered with the Population Service Kenya (PSK) and Tunza Clinic to carry out cancer screenings, reaching 4,625 individuals from low-income areas in Kenya who do not have access to affordable healthcare.

Together with the United Nations Development Programme (UNDP), Stanbic South Sudan initiated a programme to support the National Prisons Service of South Sudan Vocational Training Centre (VTC) programme with a donation of 20 computers. The computers augment ICT vocational training in the Juba, Wau and Malakal central prisons, respectively, preparing the inmates for life beyond conviction

In addition, the Group has spent KSh 2.5 million on education to support needy children. The Group continues to champion women entrepreneurs through its flagship DADA program, which supports women in their financial and non-financial endeavours. Since its inception, the Stanbic has signed up over 47,000 women. In the first half of this year, the Group has enabled access to funds through DADA loans of  KSh 4.8 billion.

In recognition of Stanbic’s commitment to the growth and development of Kenya, the Bank was awarded the Best Investment Bank in Kenya by Euromoney and EMEA Finance Africa Banking awards for the 10th consecutive year.

Mudiwa added that the Group would continue to focus on deepening client relationships and improving customer service and operational efficiency.

“We hope to build on this good momentum for the remainder of 2022, to deliver better returns to our shareholders continually, unmatched service to our customers and ultimately, to move the Kenyan and South Sudan economy forward”.

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Wanjiku Njuguna is a Kenyan-based business reporter with experience of more than eight years.

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