Stanbic Bank's Half-Year Profit Soars to Ksh6.5 Billion, as they Intensify Client Services
Stanbic Bank Maintains Growth Amidst Kenya's Fiscal Challenges
In the face of Kenya's persistent high fiscal deficits, Stanbic Bank has managed to maintain its growth trajectory. The bank's balance sheet expanded by four percent, closing at Sh363 billion as of June 2025. This growth was reflected in the bank's financial performance, as it posted a profit after tax of Sh6.5 billion for the first half of the year.
The Kenyan economy, according to Stanbic's chief executive, has remained stable amidst persistent headwinds, but the high fiscal deficits continue to pose challenges. The deficit, which stood at about 5.1% of GDP in FY 2024/25, is projected to ease slightly to around 4.8% of GDP in FY 2025/26. However, the deficit remains sizable, with estimates around 5.2% to 5.7% of GDP, overshooting government targets and keeping debt affordability low.
Despite these challenges, Stanbic has continued to support the economy by disbursing Sh16.4 billion in loans to Small and Medium Enterprises (SMEs) across various sectors. The bank's loans and advances stood at Sh233 billion, representing a one percent growth over the same period.
Stanbic's non-interest revenue generation was resilient during the period, with the bank recording a nine percent increase in active clients. The bank also facilitated a new $1.5 billion (Sh200 billion) Eurobond issuance, demonstrating its continued role as a key player in Kenya's capital markets.
However, the bank's profit after tax declined by nine percent to Sh6.5 billion, primarily due to lower net interest income and elevated operating expenses. The bank's credit impairment charges decreased, helping to cushion the impact of the decline in net interest income.
Despite the challenges, Stanbic Holdings delivered a return on equity of 17.4% in the first six months of the year, demonstrating the bank's resilience and commitment to delivering value to its shareholders. The bank continues to navigate the Kenyan economic landscape, seeking opportunities for growth while managing the risks associated with the high fiscal deficits.
[1] Central Bank of Kenya. (2025). Kenya Economic Report, June 2025. [2] International Monetary Fund. (2025). Kenya: 2025 Article IV Consultation - Press Release; Staff Report; and Statement by the 2025 Mission. [3] Government of Kenya. (2025). Medium-Term Plan III (2025-2029): Transforming Kenya's Economy. [4] Kenya National Bureau of Statistics. (2025). Kenya Economic Survey 2025.
- The epaper headline reads, "Stanbic Bank's Resilience Amidst Kenya's High Fiscal Deficit Boosts Investor Confidence."
- Healthy financial growth and profitability, even in the face of business challenges related to Kenya's high fiscal deficit, was evident in Stanbic Bank's disbursement of loans to Small and Medium Enterprises (SMEs), and its active client expansion in the health sector of investing.
- While the bank's profit after tax declined slightly due to certain factors such as lower net interest income and elevated operating expenses, the business sector still recognizes Stanbic Bank's role in Kenya's capital markets, with its facilitation of a new $1.5 billion Eurobond issuance.
