NAIROBI, Kenya – Stanbic Bank Holdings shareholders are set for a bigger payday after the lender announced a 13% increase in net earnings for the year ended December 31, 2024.
The stronger performance has allowed the bank to raise its dividend payout by 35% to Sh20.74 per share, up from Sh15.35 per share in 2023.
Despite facing revenue pressures, Stanbic reported a net profit of Sh13.7 billion, a growth its CEO, Joshua Oigara, attributed to strategic investments in technology, talent, and innovative business solutions.
He also credited cost efficiencies and lower credit impairment charges for the improved bottom line.
“We had a robust performance in 2024, fuelled by our ongoing focus on platforms, solutions, and processes that drive business growth while maximizing value for our stakeholders,’’ Oigara said during an investor briefing in Nairobi on Wednesday.
The lender posted a 27% rise in interest income to Sh48.2 billion, driven by a higher-yielding asset book and investment portfolio.
However, this gain was partially offset by a 93% spike in interest expenses, resulting in a 5% decline in net interest income.
Non-interest revenue also dipped 1.7%, affected by narrower margins and the absence of a one-off significant transaction recorded in 2023.
This contributed to a 3.8% drop in total income, though higher trading and transactional volumes helped mitigate the impact.
Earnings per share rose 13%, while Return on Equity (ROE) improved by 70 basis points, reinforcing the bank’s commitment to delivering shareholder value.
The bank’s Chief Finance Officer, Dennis Musau, noted the group’s resilience despite market headwinds, particularly in its South Sudan operations, which were affected by reduced oil production linked to the Sudan conflict.
Nevertheless, the branch still managed to post a Sh176 million profit after tax.
Meanwhile, Stanbic’s new asset management business is proving its viability, reporting Sh2.45 billion in assets under management (AUMs) within six months of its launch.
Among the bank’s subsidiaries, SBG Securities Limited and Stanbic Bancassurance Intermediary Limited posted profits of Sh20 million and Sh174 million, respectively.
Musau emphasized that the bank had absorbed some of the rising funding costs instead of fully passing them on to borrowers, a move that helped sustain lending growth while keeping credit defaults below industry averages.
On the sustainability front, Stanbic screened 266 clients for environmental and social risks, recycled 99.92% of its waste, and processed 85% of transactions digitally, while also cutting energy costs.
