By Elijah Odhiambo
Stanbic Holdings Plc has recorded a net profit of Ksh9.1 billion for its financial year ended 31 December 2022 from last year’s Ksh7.2 billion, an increase linked to growth in revenue and customer loans and improved operational efficiency.
The lender reported an increase in revenue by a third over the examined period, bringing its total to Ksh32 billion. Customers’ deposits climbed by 12 percent to reach Ksh272 billion, while loans and advances to customers increased by 27 percent to reach Ksh36 billion, underscoring the Bank’s dedication to fostering economic expansion and development.
According to Stanbic Kenya and South Sudan’s Chief Executive, Mr. Joshua Oigara, the bank’s strategic plan formulated and adopted three years ago has steered the bank ahead and helped it deliver better results.
He pointed out that the company’s quick expansion was a result of the strategic plan’s emphasis on digital innovations for service delivery that improved customer experience and increased operating efficiencies.
“Despite the uncertain and challenging operating environment last year, the business delivered strong results, thanks to focused execution across our strategic plan. The plan is anchored on catalytic growth pillars such as customer service excellence and technology integration to boost operating efficiencies,” Oigara said.
Dennis Musau, Chief Financial and Value Officer of Stanbic Holdings, stated that the Bank’s necessary actions taken over time and the tremendous progress made on its strategic strategy have together contributed to its strong growth momentum.
“Over time, we have made investments to drive faster customer acquisition, efficient and convenient service and internal operational efficiency. The outcome of these efforts is evident in our Cost to Income ratio which reduced from 50.9 percent in 2021 to 46.7 percent in 2022, boosting our Return on Equity to 15.3 percent, up from 13.3 per cent in 2021,” Musau said.
In the third quarter and through the first nine months of 2022, the lender’s Customer loans increased by 34 percent to Ksh237 billion while customer deposits grew by 26 percent during the same period, owing to a continued strategic focus on leveraging digital platforms to deliver innovative and smart financial solutions to various customer segments. Revenue also grew by double digits at 31 percent to close at Ksh23 billion.
The Bank’s contribution has been acknowledged as a reputable financial institution through a number of awards, including Best Trade Finance Bank in Kenya, Best Investment Bank in Kenya, The Women on Boards Network’s 2022 KEPSA Gender Mainstreaming Award, Winner of the Women Business Awards’ 2022 Financial Leadership Award, and Overall Winner of the Financial Reporting Awards (FIRE Awards, 2022).
The bank’s DADA programme, which assists women in both financial and non-financial endeavors, continues to champion women entrepreneurs. Since its inception, Stanbic has enrolled over 50,000 women. The Bank enabled access to funds through DADA loans of over Ksh7 billion.
In December 2022, the Stanbic Board of Directors appointed Mr. Joshua Oigara as Chief Executive of Stanbic Bank Kenya, and South Sudan, following the retirement of Mr. Charles Mudiwa, after two decades of service to the Standard Bank Group.