Stanbic Holdings Plc has reported a Ksh. 9.1 billion net profit for its financial year ended 31 December 2022. This represents a 26.3 per cent rise in profitability from the Ksh. 7.2 Billion which was reported in a similar period last year.
This was on the back of a 28% growth in revenue to close at Ksh. 32 Billion in the period. Customer deposits also increased by 12% to stand at KES 272 billion, while loan and advances to customers were up 27% to close at KES 236 billion.
On the other hand, the group’s operating expenses, rose from Sh12.7 billion to Sh14.97 billion, partly on near doubling of provisioning for non-performing loans from Sh2.5 billion to Sh4.98 billion.
Stanbic Holdings Chief Financial and Value Officer Mr. Dennis Musau noted that the significant progress on its strategic plan and requisite measures made by the Bank over time have cumulatively contributed to its strong growth momentum.
“Over time, we have made investments to drive faster customer acquisition, efficient and convenient service and internal operational efficiency. The outcome of these efforts is evident in our Cost to Income ratio which reduced from 50.9% in 2021 to 46.7% in 2022, boosting our Return on Equity to 15.3%, up from 13.3% in 2021.”
Stanbic Kenya and South Sudan’s Chief Executive, Mr. Joshua Oigara said the firm’s strategic plan formulated and adopted three years ago continues to facilitate growth and organizational resilience. He noted that the strategic plan founded on digital innovations for service delivery, enhanced consumer experience and increased operating efficiencies had translated to an accelerated balance sheet growth.
“Despite the uncertain and challenging operating environment last year, the business delivered strong results, thanks to focused execution across our strategic plan. The plan is anchored on catalytic growth pillars such as customer service excellence and technology integration to boost operating efficiencies. We can see the payoff whilst providing a good launchpad for the next three-year strategy to be unveiled later this year,” Oigara said.
Shareholders are expected to enjoy KES 4.98 billion in dividends, being 55% of the 2022 profit after tax and representing a 40% increase in total dividend payment from previous year’s KES 3.56 billion.