SBIC | Stanbic Holdings FY22 Earnings Note

Stanbic Holdings PLC FY’22 earnings results were higher than our expectations. The lender posted a 25.69% y/y climb in PAT and a 25.70% growth in EPS to KES 9.06Bn and KES 22.92/share respectively driven by a 31.81% y/y growth in net interest income and a 23.74% y/y growth in non-interest income. Trailing ROaE & ROaA improved to 15.66% & 2.84% respectively in FY’22 as NIMs remained adequate at 5.89. The board of directors recommended a KES 12.60 Dividend, which was higher than our KES 9-11.00 expectations, and 40.00% higher than the KE 9.00 in FY’21.

Customer deposits grew 19.53% y/y to KES 304.32Bn faster than the 16.36% y/y growth in the Loan book to KES 266.83Bn leading to a 239bps decline in the loan deposit ratio to 87.86%. We observed a notable jump in lending to sectors such as infrastructure (KES 15.00Bn vs KES 3.90Bn in FY’21), SME lending ( KES 33.00Bn vs 24.00Bn in FY’21) and Affordable housing (KES 267Mn). Digital lending platform (M-jeki) disbursed a monthly average KES 3.06Bn higher than the FY’21 average of KES 2.30Bn highlighting the growth potential in the digital lending business. Allocation to investment securities grew 40.34% y/y to 83.55Bn in FY’22 driven by hunt for higher yields. Fair Value changes through OCI recorded a 5.71x decline y/y to 58.20Mn.


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AIB-AXYS Africa Ltd is the fusion of two established companies; AIB Capital Limited and Apex Africa Capital Limited, both with over 25 years of experience in the Securities market. With the solid reputation and experience of the professional teams, we leverage talent and networks to better service businesses and investors looking to capitalize on the African growth story, and its vibrant financial sector.
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