NAIROBI, Kenya, May 8 – Stanbic Bank Kenya posted a 5 percent rise in profit after tax to Sh3.5 billion for the first quarter ending March 2026, supported by higher net interest income, loan growth and cost management.
The lender had recorded a net profit of Sh3.3 billion during a similar period last year.
Net interest income rose by 12 percent to Sh7.6 billion, driven by increased lending, particularly in foreign currency loans to clients in the trade, energy, building and construction sectors.
Loans and advances grew by 6 percent, while the bank’s balance sheet expanded by 23 percent from Sh450 billion to Sh552 billion, supported by growth in customer deposits and recovery in private sector credit.
Private sector credit growth accelerated to 8.1 percent in March, reflecting improving economic activity and stronger borrowing demand.
“We sustained balance sheet growth from mid-2025, reflecting renewed momentum in the Kenyan economy, underpinned by improving market conditions and a rebound in private sector credit,” said Abraham Ongenge.
“The double digit Q1 growth was driven by higher customer deposits reflecting the trust our customers continue to place in our brand, which we efficiently deployed into lending, interbank placements and financial investments.”
The bank, however, noted that the sector continued to face pressure on profit margins following successive interest rate cuts by the Central Bank of Kenya.
The Central Bank Rate declined from 10.75 percent in March 2025 to 8.75 percent in March 2026, while 91-day Treasury bill rates fell from 8.79 percent in December to 7.40 percent by March this year, reducing returns on interest-earning assets.
According to Dennis Musau, the lender responded through tighter cost controls, risk management and digital banking expansion.
“Despite margin pressures in the first quarter of 2026 stemming from the lower interest rate environment, we responded decisively through disciplined cost and risk management, targeted lending growth, and continued expansion of our digital banking platforms, sustaining balance sheet momentum as private sector credit recovered,” he said.
