Stanbic Bank Kenya has posted an 84.3 percent growth in profit to Sh3.89 billion for the three months ending March.
The growth was on the back of higher income in the review period with total operating income rising 64.7 percent to Sh11.15 billion.
Non-interest-funded income grew at the fastest pace, increasing to Sh5.74 billion from Sh3.03 billion compared to the previous like period.
Forex trading income was the primary driver for the non-funded income having grown by 1.48 fold to Sh4.26 billion.
“During the quarter, the bank remained focused on executing its three-year medium-term strategy that started in 2021. The outcomes demonstrate our ability to create shared value and sustainable returns for shareholders and multiple stakeholders,” said Stanbic Bank Kenya and South Sudan CEO Joshua Oigara.
The lender's net interest income grew by 44.9 percent to Sh5.42 billion from Sh3.74 billion previously.
The growth in interest income was partially anchored on an 11.7 percent loan book growth to Sh230.7 billion from Sh206.46 billion a year ago.
The bank’s customer deposits meanwhile grew twice as fast or by 23.8 percent to reach Sh291 billion from Sh235.11 billion.
Non-interest expenses nevertheless spiked in the period to push up Stanbic’s cost base as provisions for bad loans soared by 132 percent to Sh1.14 billion from a lower Sh491 million a year ago.
The growth in the cover for bad loans is attributable to a lift in gross non-performing loans and advances which hit Sh29.29 billion in the quarter ended March from Sh24.56 billion in the contrasting 2022 period.
The bank has stated it maintains a strong growth momentum on all revenue streams going into the half-year period.