Stanbic reports Sh3.3 billion first quarter net profit

Stanbic Bank has announced a Sh3.3 billion profit after tax for the period ended March 31, 2025. The lender attributed the first quarter performance to a shift in year-on-year macroeconomic dynamics and base effects, which have temporarily impacted growth momentum.

Net interest income grew by five per cent on the back of increased income from customer lending and government securities.

Loan books increased by six per cent, from December 2024, outpacing the private sector credit growth at 0.2 per cent, while the deposit book grew by five per cent - from December 2024 signaling customer confidence and greater transactional activity.

Interest expense on customer deposits declined by 25 per cent as the cost of funding declined in the first quarter of the year, further creating a buffer on the revenue.

Stanbic Bank Kenya and South Sudan’s chief executive Joshua Oigara said the lender demonstrated resilience amidst a tough operating environment.

"Our quarter one, 2025 results reflect the dynamic shifts within our operating environment, shaped by both local and global economic headwinds. We continue to assess these market dynamics and respond appropriately, leveraging our robust strategies and operational flexibility to maintain a strong foundation for future growth,” he said.

“Encouraging signs of continued economic recovery and stability, coupled with a clear strategic roadmap, position us well to navigate the year ahead in delivering long-term, sustainable value for our stakeholders.”

“South Sudan has resumed oil production and exports via Sudan after repairs to the damaged pipeline, a move vital for the country’s financial stability. Our South Sudan business continues to demonstrate resilience, leveraging the oil ecosystem to support our customer operations,” Oigara added.

The bank said it continued to focus on customer enablement, as well as cost and risk management which translated to a stronger credit impairment positioning and a low credit loss ratio of 1.19 per cent.

Customer numbers went up by 10 per cent resulting in higher transaction volumes and increased fee and commission income.

Stanbic’s share price posted a 28 per cent year-on-year growth during the period, demonstrating sustained investor confidence and brand trust. Market capitalisation grew by 26 per cent to Sh63.9 billion as of March 31, 2025.

Stanbic’s chief financial and value officer Dennis Musau affirmed the lender's continued efforts to build innovative solutions for clients, complemented by processes to support client growth.

“Our fundamentals remain resilient with demonstrable growth in core customer segments, a disciplined risk management approach and continued investment in technology and innovation,” he said.

“As we navigate a dynamic operating environment, we stay focused on partnering with our customers, strengthening stakeholder relationships, and delivering sustainable, long-term value.’’  

By the end of the quarter, the bank said it had disbursed Sh8.14 billion to small and medium enterprises (SMEs), with Sh1.7 billion channeled to businesses in the Africa-China corridor.

The Bank also implemented capacity building and funding programs through the Stanbic Foundation, with over 796 beneficiaries receiving catalytic funding.