Home Banking & Finance Stanbic bank reports Ksh.12bn profit rise

Stanbic bank reports Ksh.12bn profit rise

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Stanbic Bank has announced a notable surge in its net profit, marking a 34.2 percent increase to Ksh. 12.2 billion for the financial year ending December 31, 2023.

This rise in profitability is attributed to an uptick in net interest income, which grew from Sh18.9 billion to Sh25.6 billion. Additionally, non-interest income, primarily stemming from fees and commissions, also saw positive growth from Sh13.14 billion to Sh15.67 billion.

However, the bank’s operational expenditures rose from Sh14.97 billion to Sh17.99 billion during the same period.

Notably, customer deposits rose by 18 percent to KES321 billion, while loans and advances increased by 10 percent to KES 261 billion. Non-interest income benefited from foreign exchange revenue, driven by increased volumes and better margins.

Despite challenges such as currency fluctuations, inflationary pressures, rising interest rates, and geopolitical tensions, the Group achieved robust financial results, showcasing resilience in its business model. Joshua Oigara, Stanbic Bank Kenya and South Sudan Chief Executive, emphasized the commitment to driving growth in Kenya and South Sudan.

In light of the strong performance, the dividend payout has been raised by 21.8 percent to Sh6.07 billion. The Stanbic board proposed an increase in dividend per share from Sh12.60 to Sh15.35, marking the highest-ever payout in the institution’s history.

The augmented dividend per share translates to shareholders receiving a total of Sh6.07 billion, accounting for 49.9 percent of net earnings, compared to the previous year’s distribution of Sh4.98 billion, which represented 55 percent of profits.

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