Stanbic Bank Posts 5pc Rise in Q1 Net Profit to Kes 3.5bn

By The COAST Reporter

Email, thecoastnewspaper@gmail.com

Stanbic Bank Kenya has posted a five (5) per cent year-on-year growth in profit after tax to Ksh3.5 billion in the first quarter of 2026 driven by increased lending that offset margin compressions from consecutive policy rate cuts.

The growth, compared to the Ksh3.3 billion realised in a similar period last year was driven by a double-digit balance sheet growth, prudent cost and risk management.

Loans and advances grew by six (6) per cent driven by foreign currency lending demand to clients in the trade, energy, building and construction sectors as the Central Bank of Kenya (CBK) continued to ease its policy stance aimed at stimulating lending and easing pressure on businesses and households.

This saw the lender expand its balance sheet by 23 per cent from Ksh450 billion to Ksh552 billion driven by higher customer deposits and the recovery of private sector, which picked to 8.1 per cent in March.

Abraham Ongenge, Stanbic Bank Kenya chief executive officer, said: “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.”

“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,” he noted.

During the period under review, the banking sector experienced margin pressure following successive policy rate cuts.

The CBR declined from 10.75% in March 2025 to 8.75% in March 2026, while 91‑day Treasury Bill rates fell from 8.79% in December to 7.40% by March 2026, resulting in lower asset yields.

The Bank noted that its net interest income grew 12% to Ksh7.5 billion compared to Ksh6.7 billion realised in a similar period last year while operating expenses were maintained within inflationary growth and within target on account of cost management discipline.

Net interest income up 12% to KES 7.6Bn despite consecutive CBR rate cuts
Balance sheet expands 23% from KES 450Bn to KES 552Bn on deposit-driven growth momentum

Dennis Musau, the chief financial and value officer said: “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.”

The Bank continued to accelerate the digitisation of its financial services, introducing innovative, customer-centric solutions designed to respond to evolving needs from flexible savings solutions to diversified investment options, with products structured to provide stability and opportunity amid economic volatility.

“We remain firmly focused on sustainable balance sheet growth, with a clear priority on deepening sticky transactional accounts while maintaining balance sheet efficiency. Improved macroeconomic fundamentals are translating into tangible growth opportunities, reflected in our credit loss ratio declining to 0.44% from 0.57%, and we remain committed to be the partner of choice for enterprises across the spectrum, providing the capital needed to fuel growth,” he added.

Financial investments significantly grew by 70% YoY, driven by the strategic redeployment of excess liquidity into government securities awaiting redeployment to lending.

The pressure on trading income was also partially offset by higher fees and commissions from Investment Banking.

Anchored by a core capital ratio of 14.59%, well above the 12.50% regulatory minimum — and a resilient balance sheet, Stanbic Bank Kenya is positioned to accelerate its growth agenda, deepening financial access for individuals and enterprises across the region.

The Bank has received several awards in 2026 including: Best Bank in Mortgage Finance, Best Bank in Mobile Banking, Best Bank in Tier 1 and 1st Runner-Up – Overall Best Bank in Kenya at the Think Business Awards.

It also emerged winner, Mergers and Acquisitions Financial Advisor by Deal Flow, and General Corporate Finance Financial Advisors by Deal Value at the 2025 Dealmakers Africa Annual Awards.