Stanbic posts Sh6.5b half-year profit as it ramps up client support

Stanbic Bank, Chief Financial and Value Officer Dennis Musau, Stanbic Holdings Plc Group CEO Patrick Mweheire, Chairman Joseph Muganda and Stanbic Bank Kenya and South Sudan CEO Joshua Oigara during the Stanbic Holdings half-year 2025 financial results briefing, on August 7, 2025. [Courtesy]

Stanbic Holdings Plc has posted a profit after tax of Sh6.5 billion and delivered a return on equity of 17.4 per cent in the first six months of this year.

The lender's performance for the period was underpinned by resilient non-interest revenue generation and lower credit impairment charges, which helped cushion the impact of a decline in net interest income.

The listed lender, with operations in Kenya and South Sudan, noted that while year-on-year organic growth remained subdued, its continued focus on operational excellence and robust risk management enhanced its fortitude and strengthened its long-term growth outlook.

During the period, Stanbic recorded a nine per cent increase in active clients, driven by the continued optimisation of its products and digital platforms.

This growth, coupled with targeted client support initiatives, strengthened the lender's credit position, contributing to a four per cent expansion in the balance sheet from the December 2024 closing position.

Speaking on the half-year performance, the bank's chief executive for Kenya and South Sudan Joshua Oigara said the Kenyan economy remained stable amidst persistent headwinds. "Nonetheless, some pressures persist as evidenced by sluggish private sector credit uptake, high fiscal deficits and geopolitical risks," he noted.

"We believe that our business will continue to demonstrate resilience and keep momentum even as the market continues to post recovery."

He said during the reporting period, all four business lines demonstrated robustness and strategic execution, with corporate and investment banking playing a key role in facilitating a new $1.5 billion (Sh200 billion) Eurobond issuance, tender offer for the Kenya, reinforcing its leadership in sovereign advisory.

Business and commercial banking continued to support the real economy, disbursing Sh16.4 billion in loans to SMEs across various sectors.

Chief Financial and Value Officer Dennis Musau said the half-year results signal steady progress, anchored in a stable macroeconomic climate and recovering private sector credit growth.

"Commercial lending to the private sector grew by two per cent in May, up from a contraction of 2.9 per cent in January—signalling a rebound in demand alongside easing interest rates. We continue to refine our strategic focus, leveraging our core strengths to unlock long-term value and deliver sustainable returns for our shareholders in an evolving market landscape," he noted

The bank recorded a non-performing loan (NPL) ratio of 9.5, which is below industry levels at 17.6 per cent, and representative of a healthy asset book. ‘

The bank also reduced its lending rates by 180 basis points cumulatively in response to Kenya’s easing monetary policy stance.

"Profit after tax declined by nine per cent to Sh6.5 billion, largely impacted by lower net interest income and elevated operating expenses, primarily due to prior year base effects," noted the lender.

Customer deposits closed at Sh330 billion, a four per cent increase from December 2024, while loans and advances stood at Sh233 billion, representing a one per cent growth over the same period.