Stanbic Holdings Plc, the Kenyan-listed subsidiary of South Africa’s Standard Bank Group, reported a flat full-year profit after tax of $106.4 million (KShs 13.72 billion) for the 12 months ended December 31, 2025, according to market data released on March 11, 2026. The flat performance comes despite a contraction in top-line revenue, offset by sharply lower credit impairment charges.
Total revenue declined 3.1% year-on-year to $298.5 million (KShs 38.51 billion), driven by reductions in both net interest income and non-interest income. This pressure reflects a normalising interest rate environment in Kenya following earlier high rates that had boosted margins but also constrained credit demand in prior periods.
The profit stability was primarily supported by a 47.5% reduction in credit impairment charges, which fell to $12.6 million (KShs 1.63 billion) from $24.0 million (KShs 3.10 billion) in 2024. This improvement points to better asset quality and possibly more conservative lending or recoveries in the loan portfolio.
On the balance sheet, total assets grew 19.0% to $4.20 billion (KShs 541.25 billion). Loans and advances to customers increased 24.4% to approximately $2.84 billion (KShs 366.53 billion), outpacing broader private sector credit trends in Kenya. Customer deposits rose 23.5% to $3.25 billion (KSh 418.61 billion), indicating solid funding inflows despite competitive deposit pricing.
The bank proposed a final dividend of $0.144 per share (KShs 18.55), lifting the full-year dividend to $0.173 per share (KShs 22.35), a 7.8% increase from the prior year. Earnings per share remained steady at $0.269 (KShs 34.7).
The results follow a weaker Q3 2025, when profit after tax fell 7.5% to around $72.7 million (KShs 9.38 billion), largely due to a 24.5% drop in non-funded income amid compressed margins.
Kenya’s economy grew an estimated 4.9% in 2025, according to World Bank and IMF projections, supported by easing inflation (around 3%), monetary policy accommodation, and resilience in agriculture and services. However, the banking sector has faced headwinds from earlier high interest rates that slowed credit expansion before recent rate cuts encouraged borrowing.
Stanbic Holdings, with operations in Kenya and South Sudan, maintains a market capitalisation of roughly $784 million (KShs 101.1 billion) on the Nairobi Securities Exchange.
Shares have gained over 30% year-to-date as of early 2026 trading levels, though the flat profit and revenue decline highlight ongoing challenges in sustaining earnings growth amid macroeconomic normalisation and competitive pressures in East Africa’s banking landscape.
Investors may weigh the strong balance sheet expansion and dividend increase against the revenue contraction and dependence on impairment relief for profitability stability
