NAIROBI, Kenya — Stanbic Bank Kenya has reported a Sh3.5 billion profit after tax for the first quarter of 2026, marking a 5 P.c rise from Sh3.3 billion posted during the same period last year, driven by higher earnings from loan interest income.
The lender said the improved performance was largely supported by a 12 P.c growth in net interest income, which rose to Sh7.6 billion from Sh6.7 billion, boosted by an expanded loan book and prudent cost and risk management measures.
Stanbic Bank Chief Financial and Value Officer Dennis Musau said the bank had successfully navigated margin pressures caused by the lower interest rate environment through strategic adjustments.
“Despite margin pressures in the first quarter of 2026 stemming from the lower interest rate environment, we responded decisively through disciplined cost and risk management, targeted lending growth, and continued expansion of our digital banking platforms, sustaining balance sheet momentum as private sector credit recovered,” Musau said.
The bank noted that increased lending activity helped cushion the impact of margin compression following consecutive policy rate cuts by the Central Bank of Kenya, which has maintained an accommodative policy stance to stimulate private sector borrowing and ease financial pressure on businesses and households.
Loans and advances grew by 6 P.c during the quarter, driven largely by strong foreign currency lending demand from clients in the trade, energy, building and construction sectors.
Stanbic Bank Kenya Chief Executive Officer Abraham Ongenge said the lender’s performance reflected broader signs of economic recovery.
“We sustained balance sheet growth from mid-2025, reflecting renewed momentum in the Kenyan economy, underpinned by improving market conditions and a rebound in private sector credit,” Ongenge said.
The bank’s balance sheet expanded by 23 P.c to Sh552 billion, up from Sh450 billion in the corresponding period last year.
The growth was largely attributed to higher customer deposits and improved private sector credit uptake, which rose to 8.1 P.c in March as businesses regained confidence amid improving macroeconomic conditions.
