NAIROBI, Kenya, Aug 7 – Stanbic Holdings posted a slight decline in profit after tax in the first half of this year to Sh6.5 billion, compared to a net profit of Sh7.2 billion recorded during a similar period last year.
In the six months to June 31, operating expenses increased by 16 percent, attributable to the appreciation of the Kenyan shilling as well as investments in long-term strategic initiatives.
‘’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,” the lender’s CEO, Dr Joshua Oigara, stated.
“Our focus in this period was largely on supporting our clients navigate shifting market conditions, while fortifying our growth through robust risk management, capital strength and well managed liquidity levels. We believe that our business will continue to demonstrate resilience and keep momentum even as the market continues to post recovery.”
However, the lender’s non-interest revenue jumped by 9 percent, supported by higher customer transaction volumes.
Likewise, credit impairment charges fell by 26 percent, underlining enhanced risk management practices and improved credit portfolio quality.
Client number growth, which expanded by 9 percent, helped customer deposits grow to Sh330 billion, representing a 4 percent rise compared to a similar period last year.
“In recognition of this performance and commitment to shareholder returns, the Group has recommended an interim dividend of KES 3.80 per share, marking a 106.5% increase year-on-year.”
