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.” Outgoing 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.”
Source: Stanbic Bank Kenya Ltd.
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.