Stanbic Bank Kenya has reported a 4% decrease in full-year revenue, dropping to KSh 39.7 billion, primarily attributed to a significant reduction in lending activities.
The bank’s loan book contracted by 11.6%, falling to KSh 230.32 billion in 2024.
Despite the decline in lending, the bank posted a robust after-tax profit of KSh 13.7 billion, driven by higher transaction volumes and improved cost management.
However, customer deposits also saw a slight year-on-year decrease of 2.4%, settling at KSh 339 billion.
Stanbic Bank CEO Joshua Oigara expressed optimism for a rebound in credit activity, particularly in the second quarter of 2024. This is expected to be fueled by the government’s planned payments of pending bills to the SME sector and reduced domestic borrowing.
The bank has also raised concerns over the recent suspension of USAID operations by the U.S. government, warning that this could impact its subsidiaries’ operations in neighboring countries.
In a positive note for shareholders, Stanbic Bank declared a dividend of KSh 20.74 per share, reflecting its commitment to delivering value despite the challenging operating environment.
