Stanbic has reported a 34.2 percent rise in net profit to  Ksh. 12.2 billion for the financial year ended December 31, 2023.

The rise in profitability was attributed an increase in net interest income, which grew from Sh18.9 billion to Sh25.6 billion. Non-interest income, primarily generated from fees and commissions, also experienced a positive growth from Sh13.14 billion to Sh15.67 billion.

The group’s operational expenditures on the other hand increased from Sh14.97 billion to Sh17.99 billion.

During the period, customer deposits rose by 18 per cent to KES321 billion. Loans and advances increased by 10 per cent to KES 261 billion. Non-interest income was buoyed by foreign exchange revenue, driven by increased volumes and better margins.

“Despite facing a challenging business environment marked by heightened currency and inflationary pressure, rising interest rates and geopolitical tensions, the Group delivered strong financial results. This demonstrates resilience in our business model underpinned by diligent execution of our strategy. We remain committed to our purpose of driving Kenya and South Sudan’s growth, more so as we transition to our new 3-year strategy,” said Joshua Oigara, Stanbic Bank Kenya and South Sudan Chief Executive.

Following the good performance, the dividend payout has been increased by 21.8 percent to Sh6.07 billion. The Stanbic board to propose an increase in dividend per share from Sh12.60 to Sh15.35, marking the highest-ever payout in the institution’s history.

The increased dividend per share means shareholders will receive a total of Sh6.07 billion, representing 49.9 percent of net earnings, compared to the previous year’s distribution of Sh4.98 billion, which accounted for 55 percent of profits.

On Tuesday, the directors of Stanbic recommended a final dividend of Sh14.20 per share, totaling Sh5.61 billion. This will be in addition to the interim dividend of Sh1.15 per share, amounting to Sh454.6 million, which was paid out in September last year.