Stanbic Bank Kenya has registered a Ksh 5.1 billion profit after tax for the third quarter of the year 2021, marking a significant increase of 43% from Ksh 3.6 billion last year.
This impressive performance by the bank is attributed to the institution’s solid business momentum and implementation of various interventions that have enabled the bank and its clients to weather the volatile environment caused by the pandemic.
Speaking of the bank’s performance, Chief Executive, Stanbic Bank Kenya, Mr. Charles Mudiwa said, “Our performance in this third quarter of 2021 is a true reflection of our unwavering support to our customers to help them grow and realize their full potential,”
“We have done this by providing them with bespoke solutions and client experiences. This speaks to our It Can Be brand positioning strategy which we launched last year with the purpose of empowering our customers and putting their dreams and aspirations at the forefront.”
Stanbic Bank Kenya has been on an upward trajectory through 2021 owing to its strategic stakeholder engagements and partnerships. Having rolled out their 5-year strategy, the bank is driven by its purpose, Kenya is our home, we drive her growth and premised on delivering exceptional client experiences and superior value as they champion a digital future.
On his part, Chief Finance Officer, Stanbic Bank Kenya, Abraham Ongenge, commented on the financials noting that, “Our customer loans grew by 11% to 176.6 billion and our revenue increased by 9% to Ksh17.5 billion on account of an increase in earning assets, growth in non-financial income and lower cost of funds.
The bank also saw a return on Equity of 16% from 12% and a credit loss ratio going down to 1.41% from 2.90% recorded in the same period last year.
“Our costs, excluding loan loss provisions, went up by 15% and the total capital ratio stood at 17.5% against a minimum statutory ratio of 14.5%.”
He further noted that Stanbic Holdings Plc the parent company of Stanbic Bank Kenya declared an interim dividend of 1.70 per share in August 2021.
Throughout the year, the bank has managed to deepen its focus and support for various sectors of the economy such as MSMEs and SMEs and enabling underserved groups and has further made strategic investments to expand their ecosystem while building a sustainable business for a digital future.
The Bank continues to champion women entrepreneurs through the DADA proposition which supports women in their financial and non-financial endeavors. This year, the bank celebrated the second DADA anniversary having signed up over 27,000 women and have further trained over 7,526 women and business owners on business best practices.
On the sustainability front, the Stanbic Kenya Foundation has forged partnerships with key stakeholders throughout the year.
These partnerships are anchored on Social Economic and Environmental pillars that contribute to the sustainable development of the country.
The bank has partnered with Microsoft Kenya and the Ministry of Trade and Industrialization through the Foundation to support Micro, Small, and Medium Enterprises (MSMEs) by building their capacity and equipping them with digital skills as part of the FutureNiDigital campaign.
So far, over 21,000 SMEs and individuals have benefited from the programs and are able to position their businesses better in a digital world.
The Foundation has also partnered with the United States African Development Foundation (USADF) to provide Ksh 33 million grant funding to MSMEs, cooperatives, and producer groups in Kenya to help them grow their businesses.
In addition, the bank and the Foundation partnered with GIZ and UNDP to support SMEs and enhance Job creation and Enterprise development in the country.
Through the Stanbic Foundation, the bank has partnered with the Government and signed Memorandum of Understanding with 5 counties to collaborate and support Education, Health and
Enterprise development. The Bank has also partnered with SEND A COW to build resilience among Smallholder Kenyan Farmers.
When it comes to awards, the bank has received recognition on significant fronts including the Best Trade Finance Bank in Kenya at the GTR Leaders in Trade Country Awards 2021 for their support in trade and investment flows between Kenya and key global markets including China, through the provision of innovative trade finance solutions and cross-border payments and investment solutions.
The bank was also recognized as Kenya’s Best Investment Bank by the Euromoney Awards for
Excellence 2021 for their outstanding expertise in structuring and implementing complex transactions in the region including debt arranging, loan syndications, capital markets, and advisory service. Another key recognition was the award in the Regional Category of the Integrated Reporting Awards 2021 organized by the Chartered Governance Institute of Southern Africa (CGISA).
Touching on the Bank’s business in South Sudan, Stanbic continues to remain profitable as it maintains intermediate foreign currency flows for its clients and keep costs under control, ensuring that business continues to be transactional, and liability led.
The bank continues to invest in digital capabilities in South Sudan to allow us to better serve our customers and bring down costs of operating in the country.
Mr. Mudiwa further added that, “We are looking forward to a stronger 2022 and a more sustained recovery. We remain committed to protecting Shareholder wealth and putting our customers first, continuously innovating to offer relevant solutions to meet their needs.”