NAIROBI, Kenya- Stanbic Bank has announced an impressive interim dividend of Sh1.84 per share, a reflection of the bank’s robust financial performance in the first half of 2024.
The bank, which operates in Kenya and South Sudan, reported a profit of Sh7.2 billion for the half-year ending June 2024—a 2pc increase from the previous year.
The modest profit growth is attributed to a 4pc rise in net interest income, which reached Sh12.6 billion.
This increase is largely due to an expanded average lending book and improved asset yields. The bank’s balance sheet also experienced a significant 30pc growth, swelling from Sh384 billion to Sh498 billion.
“Despite a broadly positive economic outlook in Kenya and the region, the first half of 2024 presented a mixed economic landscape,” remarked Joshua Oigara, CEO of Stanbic Bank Kenya and South Sudan.
He noted that while the appreciation of the Kenya Shilling against the Dollar bolstered foreign exchange reserves, providing some economic stability, other challenges persisted.
Oigara highlighted the impact of severe floods between March and May, which caused widespread damage to infrastructure, agriculture, and homes, disrupting economic activities.
He also mentioned that the latter half of the period was marked by civil protests, further complicating the economic environment.
Despite these hurdles, Stanbic Bank managed to cut operating costs by 7pc, a testament to its efficient management practices. Additionally, customer deposits surged by 39pc to Sh360 billion, underscoring the bank’s growing trust among its clients.
Dennis Musau, the Bank’s Chief Financial and Value Officer, emphasized the importance of these strong financial results.
“Our operating results indicate that we continue fostering economic growth, as evidenced by significant growth in the balance sheet driven by investments in key strategic sectors to catalyze sustainable economic development,” Musau stated.
He further pointed out that the remarkable growth in customer deposits not only validates Stanbic Bank’s substantial investments in enhancing customer experience but also reinforces the trust clients place in the institution.
The bank’s strategic investments and ability to navigate economic challenges highlight its commitment to sustainable growth in Kenya and South Sudan.
