Stanbic Bank Kenya Limited reported a KES 9.38 billion profit after tax for the nine months ending September 30, 2025, reflecting a 7.5% decline compared to the same period last year.
The lender attributed the dip to a 25% fall in gross interest income driven by lower interest rates and a 49% drop in foreign exchange revenue due to compressed margins.
These pressures were partially cushioned by a 49% reduction in interest expenses following balance sheet recalibration and a 34% rise in FX trading volumes.
Loans and advances to customers rose 16% year-on-year to KES 253 billion, outpacing industry private sector credit growth. The bank said the performance was anchored on stronger customer support and broader product diversification. Customer deposits grew 5%, signalling sustained client trust and strategic consistency.
Stanbic Bank Kenya Chief Executive Dr. Joshua Oigara said the bank’s third-quarter performance underscores a resilient franchise supported by growing customer activity.
“Our Q3 performance reflects the strength of our franchise and the confidence our customers place in us. With robust growth in loans and deposits, we are building the foundations for sustainable earnings as we transform for the future. We are confident this momentum will translate into stronger returns and lasting value for our shareholders,” he said.
The bank’s total assets stood at KES 476 billion, anchored on lending to key economic growth sectors including oil and gas, agriculture, SMEs and personal banking. Stanbic also facilitated a second consecutive USD 1.5 billion Eurobond transaction for the Government of Kenya, reinforcing its strategic role in liability management and macroeconomic stability.
Dr. Oigara added that the lender is intensifying efforts to narrow the profitability gap: “Our commitment to supporting key sectors of the economy has driven solid growth in loans and deposits, building momentum towards closing the profitability gap and achieving our full-year ambitions.”
Chief Financial and Value Officer Dennis Musau noted that Stanbic maintained one of the strongest credit positions in the sector amid elevated default rates. The bank’s non-performing loan ratio stood at 8.4%.
“Our balance sheet momentum remains strong, supported by sustained customer activity. While margin compression has moderated earnings, our strategic position remains solid, anchored in a stable operating environment. Our commitment to elevating our customer experience and creating operational efficiencies continues to deliver value,” Musau said.
During the review period, the bank deepened its market presence through digital innovation, growing assets under management to KES 4.81 billion and adding 18 new features to its mobile platform to enhance stability, security and user experience.
Stanbic said it expects improving macroeconomic conditions moderating inflation, a stronger shilling supported by adequate forex buffers and the resumption of oil exports from South Sudan to underpin gradual recovery despite fiscal constraints.
In October, Fitch Ratings reaffirmed Stanbic Bank Kenya’s long-term issuer default rating at ‘B’ with a Stable Outlook. The bank’s Viability Rating of ‘b’ also remained unchanged, representing the highest possible ranking on the Kenyan national scale.
Additional Performance Highlights
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Credit impairments dropped 7% on reduced exposure and stronger recoveries
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Financial investments increased 31.8% to KES 100.4 billion
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KES 94.8 billion issued in trade loans
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KES 1.27 billion disbursed under affordable housing
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KES 47.6 billion cumulatively lent to women-owned businesses under D.A.D.A
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8% of the loan book allocated to agriculture
In line with its sustainability agenda, Stanbic issued KES 4.5 billion in green building loans, KES 1.8 billion in climate-smart agriculture financing and over KES 11.5 million toward solar energy projects. The lender was ranked the 5th-largest MSME lender in Kenya by the Kenya Bankers Association.
The bank’s investment banking unit continued its strong performance, earning Stanbic the Euromoney Award for Best Investment Bank in Kenya for the fifth consecutive year. The bank also won EMEA awards for Best Refinancing in Africa and Best Sovereign Bond in Africa linked to Kenya’s major Eurobond transactions.
Through the Stanbic Kenya Foundation, the bank scaled its impact programs across MSME development, education and digital skills. The Foundation disbursed KES 57 million in catalytic funding to MSMEs, trained 6,664 individuals in financial literacy and supported more than 7,000 people with vocational training.
