Stanbic Bank shareholders are set to reap from the increased dividends this year after the lender declared a payout of Sh4.98 billion subject to shareholder approval.
The amount is a 40 jump from the Sh3.56 billion paid out in the last financial year.
This is after the listed bank posted a 26 percent increase in net profits for financial year 2022, to hit Sh9.1 billion.
The increased earnings was boosted by higher customer deposits and a reduction in the Non-Performing Loans (NPLs).
Customer deposits increased by 12 percent to Sh272 billion.
In the period under review there was a 28 percent increase in the total revenue to Sh32billion.
Stanbic's Chief Financial & Value Officer, Denis Musau said customer loans increased by 27 percent from the previous year registering Sh236billion
“The dividend per share will increase to Sh12.6 up from Sh9 that was issued in the last financial year,” said Musau.
The proposed dividend payout represents 55 percent of the firm's 2022 profits.
Loans and advances to customers increased by 27 per cent to close at Sh236 billion.
The bank also recorded a reduction in cost to income ratio which reduced from 50.9 percent in 2021 to 46.7 percent in 2022, boosting its Return on Equity to 15.3 percent, up from 13.3% in 2021.
Stanbic Kenya and South Sudan chief executive Joshua Oigara said the improved performance provides a good launch pad for the bank's next three-year strategy.
“Despite the uncertain and challenging operating environment last year, the business delivered strong results, thanks to focused execution across our strategic plan which is anchored on catalytic growth pillars such as customer service excellence and technology integration,” said Oigara
