Stanbic Bank doubles dividends after record profit

Stanbic Bank Chief Executive Charles Mudiwa speaking during the group’s financial results announcement. [Wilberforce Okwiri, Standard]

Stanbic Holdings has more than doubled dividends after net profit grew 39 per cent, to hit the highest level in the lender’s history.

Net profit for the financial year ended December 2021 rose to Sh7.21 billion from Sh5.19 billion posted in the preceding year as the bank emerged from the coronavirus disruptions.

Chief Executive Charles Mudiwa (pictured) yesterday attributed the success to the support of customers during the tough pandemic period and the lender’s digitisation drive.  

“We are glad to have achieved this objective courtesy of our dedicated team and strong partnerships with our customers. Our future-ready digital transformation journey continues to simplify our customers’ banking experience in a way that empowers and gives them more control,” said Mudiwa.

The Stanbic board has as a result raised dividend per share 2.4 times to Sh9 compared with Sh3.8 that was paid in the previous period.

The raised dividend per share will see shareholders pocket a total of Sh3.56 billion — an equivalent of 49.4 per cent of the net earnings. The previous payout was Sh1.5 billion.

The proposed payout, if approved by shareholders, will surpass the Sh7.05 per share paid out in 2019 and becomes the highest ever payout in the history of the lender.

Directors have recommended a final dividend of Sh7.30 per share, amounting to Sh2.86 billion, with shareholders expected to endorse the proposal during the upcoming annual general meeting.  

Stanbic shareholders had already received an interim dividend payout of Sh1.70 per share, translating into Sh672 million in September last year. During the review period, net interest income grew 12.3 per cent to Sh14.37 billion in line with increased lending.

Non-interest income — mainly drawn from fees and commissions — rose from Sh10.44 billion to Sh10.62 billion.