Oigara-led Stanbic Posts Ksh9.1B Net Profit, Up 26%

Stanbic Bank Kenya grew its profit after tax for the year ended December 2022 to Ksh9.1 billion, up 26% from the previous year. The 2022 full-year results were the first to be announced by Joshua Oigara since the former KCB Group CEO took over at Stanbic in November 2022.

Revenue also rose significantly, by 28 percent, to hit Ksh32 billion. The bank grew its loan book by 27 percent to Ksh236 billion.

Oigara welcomed the results stating that it would serve as a strong foundation for the bank’s yet to be unveiled three-year strategy.

“Despite the uncertain and challenging operating environment last year, the business delivered strong results, thanks to focused execution across our strategic plan which is anchored on catalytic growth pillars such as customer service excellence and technology integration to boost operating efficiencies. We can see the payoff whilst providing a good launchpad for the next three-year strategy to be unveiled later this year,” he asserted.

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In 2022, the bank saw return on equity (ROE) increase to 15.3%, up from 13.3 percent the previous year. The cost-to-income ratio fell to 46.7% from 50.9 percent, indicating improved operational efficiency.

The dividend per share rose to Ksh12.60 from Ksh9 the previous year.

“Over time, we have made investments to drive faster customer acquisition, efficient and convenient service and internal operational efficiency…the outcome of these efforts is evident in our Cost to Income ratio which reduced from 50.9% in 2021 to 46.7% in 2022, boosting our Return on Equity to 15.3%, up from 13.3% in 2021,” stated Chief Financial & Value Officer Dennis Musau.

Oigara took over from Stanley Mudiwa at the helm of Stanbic towards the end of 2022. Mudiwa retired as Stanbic Bank Kenya’s CEO effective December 1st, 2022 after more than two decades in various roles at the lender.

Oigara had enjoyed a 9-year stint at KCB. He left Kenya Commercial Bank (KCB) Group in May, six months ahead of his scheduled exit. Oigara was replaced by Paul Russo, who previously ran KCB subsidiary National Bank of Kenya (NBK).

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