Stanbic Bank maintains strong performance, a 37% increase in profit after tax for the nine months ended 30th September 2022

Nairobi, Friday 25th November 2022… Stanbic bank reported a profit of KES 7 billion for the nine months ended 30th September 2022. This is a 37% increase over the same period last year. This performance was driven by its diversified business model, focus on customer experience and dynamic digital transformation strategy. The strong performance was despite a tough operating environment characterized by slowdown in business activity in an election year, rising inflation, currency pressures, geopolitical risks and global resurgence of Covid-19 variants that affected both the global and local economy.

"Over the course of nine months, we provided financial services to our customers to help them navigate the aftermath of the Covid-19 pandemic and to help them restart and expand their businesses. We continue to leverage the Bank's strength by combining products, people, and technology to better serve our customers and to expand into new strategic areas. We will continue to invest in and grow market-leading businesses to provide superior services to our customers, serve our communities and provide sustainable returns to our shareholders, in line with our purpose." CEO Charles Mudiwa stated.

Commenting on the performance, the Chief Finance and Value Officer, Dennis Musau noted, “We delivered good results in the third quarter and through the first nine months of 2022, demonstrating the success of our transformation agenda. Customer loans increased by 34% to KES 237 billion while customer deposits grew by 26% during the same period, owing to a continued strategic focus on leveraging digital platforms to deliver innovative and bespoke financial solutions to various customer segments. Revenue also grew by double digits at 31% to close at KES 23 billion.”

Through the leadership of the outgoing Chief Executive Mr. Charles Mudiwa and reflecting on the bank’s journey, Stanbic Bank has made significant progress. The Bank rolled out innovative solutions and embedded digital channels to deliver value added financial solutions to its customers. These solutions range from the ease and convenience created by its digital customer onboarding solution, the flexibility to buy motor insurance in less than 10 minutes through the Stansure app, real-time access to Foreign Exchange rates on mobile and digital lending on its mobile app. Its future-ready digital transformation journey continues to simplify the banking experience in a way that empowers the customer and gives them more control.

Some notable highlights on the bank’s 5-year journey under the Leadership of Mr. Charles Mudiwa include:

• 2nd fastest growing Tier I bank (Profit after tax, customer loans & customer deposits)
• Rise from being the 9th to 7th most profitable bank in the period
• Double digit growth on customer numbers - 14% CAGR (Dec 2017 vs Sept 2022)
• Improved customer engagement scores - NPS score (38 in 2022 from 28 in 2017), CSI (8.4 in 2022 from 7.7 in 2017)
• First in the market to launch DADA – proposition for women
• Reduction of cost to income to 45% in 2022 from 56% in 2017
• Won significant customer mandates

The Bank launched the Stanbic Foundation which serves as its engine for delivery of sustainability initiatives.

Furthermore, the Bank signed several partnership agreements with a variety of stakeholders including the Government centered around the socio-economic development in the country. It also provided strategic solutions to SMEs in a bid to enhance their operational efficiency, capacity building and enhance access to affordable credit thereby improving their profitability and growth.

In South Sudan, Stanbic Bank collaborated with the United Nations Development Programme (UNDP), to support the National Prisons Service of South Sudan Vocational Training Centers (VTC) programme with a donation of computers. The computers supplement ICT vocational training in the central prisons of Juba, Wau, and Malakal, respectively, preparing inmates for life after incarceration.

In addition, Stanbic has spent millions on education to assist underprivileged children. In keeping with the Bank's mission of catalysing inclusive socio-economic growth, Stanbic partnered with Java House to feed students at Gatina Primary School, a public school with a student population of nearly 1,200, many of whom come from low-income areas. In addition, the Bank's Foundation donated computers to the school's ICT lab to help students improve their digital literacy.

Its flagship 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 KES 7 billion.

The Bank aims to achieve its Social, Economic and Environmental (SEE) targets through strategic partnerships and by supporting clients in sustainable development and financing their transition strategies. This has allowed the Bank to stay on track to deliver sustainable and well-balanced returns through their diversified areas of businesses.

End

For more information please contact:
Catherine Njoroge, External Affairs, Reputation & Corporate Communications, Senior Manager
Tel: +254 (722) 664 992 | Fax: +254 (20) 310601 | Email: [email protected] | For further information go to www.stanbicbank.co.ke

Issued by Africa Practice
On behalf of: Stanbic Bank Kenya

About Stanbic Holdings Plc

Stanbic Holdings Plc (“the Group”) is a subsidiary of Stanbic Africa Holdings Limited (“SAHL”), which is in turn owned by Standard Bank Group Limited (“the Group”), Africa’s leading banking and financial services group. Stanbic Holdings Plc owns 100% of Stanbic Bank Limited and 100% of SBG Securities Limited.

Stanbic Bank Kenya is a member of the Standard Bank Group, Kenya’s eighth largest commercial bank by assets. Founded on a solid legacy that spans over 100 years, Stanbic Bank Kenya continues to move forward with its purposeful strategy to drive Kenya’s growth and to be the leading financial services organization in Kenya, delivering exceptional client experiences and superior value. Stanbic Bank is licensed and regulated by Central Bank of Kenya and provides the full spectrum of financial and banking services for Corporates, SMEs and Individuals.

SBG Securities Limited is a subsidiary of Stanbic Holdings Plc in Kenya and a member of Standard Bank Group. SBG Securities is a leading stockbroker on the Nairobi Securities Exchange and is licensed by the Capital Markets Authority in Kenya where it is authorised to carry out the services of Stockbrokerage and Advisory services. The company rebranded from Stanbic Financial Services to SBG Securities Limited in August 2013.

Stanbic Bancassurance Intermediary Limited (SBIL) is a subsidiary of Stanbic Bank Holdings that is mandated and acts as an intermediary between the banks’ clients and Insurers in the business of risk management through identification of client needs and matching them with insurance solutions.