•Loans and advances to customers, increased from Sh266.83 billion to Sh356.2 billion by the end of December.
•Stanbic is the first lender to announce its full-year 2023 financial results, with others expected to follow suit by the end of the month.
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Stanbic Bank defied a challenging business environment to post a rise 34.2 percent increase in profits to Sh12.16 billion for the year ending December 2023.
The result is a growth from the previous year's Sh9.06 billion and has majorly been driven by increases in both interest income and non-funded income.
Stanbic Banks Chief Financial Value Officer Dennis Musau, said there was an increase in net interest income, which grew from Sh18.9 billion to Sh25.6 billion.
This was accompanied by a rise in loans and advances to customers, from Sh266.83 billion to Sh356.2 billion by the end of December.
Non-interest income was buoyed by foreign exchange revenue, driven by increased volumes and better margins. Additionally, investment banking fees and mobile money fees played a significant role.
“The compass to our success has been our focus on transparency, simplicity and credibility to fuelling our growth. Performance and Transparency gives us a clear priority to building trust with our community,” said the bank.
The Nairobi Securities Exchange-listed lender's performance contrasts with the anticipated performance of the broader sector during this earnings season, that has been occasioned with higher interest rates and tight monetary policies.
Supplementary income, primarily generated from fees and commissions, also experienced a positive growth from Sh13.14 billion to Sh15.67 billion. This further contributed to the overall net earnings growth.
Stanbic Bank Kenya & South Sudan Chief Executive Officer Joshua Oigara said that market challenges have not slowed the lender down noting the there are opportunities to increase market share.
“The foundation of our success will be led by strong risk & control environment, engaged employees, excellent client experience & secure & convenient services, will be a priority to achieve our goals,” said Oigara.
Stanbic is the first lender to announce its full-year 2023 financial results, with others expected to follow suit by the end of the month.
However, the group's operational expenditures increased from Sh14.97 billion to Sh17.99 billion.
Following the performance, the dividend payout has been increased by 21.8 percent to Sh6.07 billion.
This strong performance prompted 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, totalling 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.
Musau noted that the Bank’s previous three-year strategy delivered the envisioned goal of a sustainable growth trajectory with all the key metrics depicting better returns.