Stanbic posts 13% profit rise in FY’24

Stanbic Holdings PLC has reported a 13 per cent net profit increase to Ksh13.7 billion for the financial year 2024, despite a 3.8 per cent drop in total income. In a recent interview with CNBC Africa, Patrick Mweheire, the Chief Executive of Stanbic Holdings PLC, discussed the strategies in place to continue driving regional growth despite the challenges faced in certain markets. Mweheire highlighted the importance of focusing on clients and understanding their needs holistically, which has proven to be beneficial for the company. Despite the drop in revenue, Stanbic Holdings PLC was able to increase dividends by 35 per cent and grow the bottom line by 13 per cent. One of the key strategies mentioned by Mweheire is collaborating across business segments and managing ecosystems along the identified areas of focus. By drilling down on client needs and executing strategic plans, the company aims to further enhance its performance and drive growth in high potential markets such as Kenya and South Sudan. Furthermore, Mweheire discussed the expansion of the new asset management business, which reported 2.45 billion Kenyan shillings in assets under management within six months. He emphasized the shift in customer behavior towards investing in unit trusts and other financial products, highlighting the need for banks to respond with appropriate offerings. Stanbic Holdings PLC aims to capitalize on this trend by expanding its asset management offering across the region and providing more options for clients to optimize their investments. Despite facing challenges in volatile markets like South Sudan, Mweheire expressed confidence in the company's ability to navigate through such environments. By closely monitoring the situation, managing existing clients, and waiting for positive outcomes, Stanbic Holdings PLC is prepared to reinvest in the region when the time is right. In the meantime, the company remains focused on exploring regional growth opportunities, particularly in East Africa. As part of the largest financial institution on the continent, Stanbic Holdings PLC leverages its position to contribute significantly to the Africa region's business. With a strategic focus on East Africa, the company sees substantial growth potential in the region due to factors such as GDP growth, trade volumes, and cross-border investments. By leveraging its balance sheet and investing in key markets like Kenya, Stanbic Holdings PLC aims to strengthen its presence in East Africa and capitalize on the region's economic momentum. Regarding the African Continental Free Trade Area (AfCFTA), Mweheire acknowledged the potential opportunities it presents for regional trade and economic integration. While recognizing the challenges of getting 51 countries to sign the agreement, he emphasized the importance of continuous efforts to reduce non-trade barriers and promote a conducive environment for trade. Stanbic Holdings PLC remains optimistic about the prospects of AfCFTA and is committed to playing a role in facilitating seamless trade within the region. In conclusion, Stanbic Holdings PLC's resilient performance in FY’24 reflects its strategic focus on client-centric approaches, business collaborations, and regional growth initiatives. Despite the challenges posed by market dynamics and geopolitical uncertainties, the company remains committed to driving sustainable growth, expanding its offerings, and contributing to the economic development of East Africa and beyond.