Stanbic Holdings HY’22 EPS edged up 36.91% to KES 12.13 higher than our expectations of KES 11.80. Additionally, PAT edged up 36.95% y/y to KES 4.80Bn driven by a 16.07% y/y decrease in Loan impairment provisioning and a 22.77% increase in Total Operating Income. Customer deposits reduced 0.68% to KES 258.23Bn while the loan book grew 17.54% to KES 244.04Bn, taking the loan to deposits ratio 14.26% points higher to 94.50%. Stanbic bank’s exposure to government securities reduced 36.16% y/y to KES 52.49Bn and 11.97% q/q indicating a strategy to slow down on government papers as the yield curve steepening has exposed most lenders to fair value losses. At the current growth rate, we expect the lender to close FY’22 at a PAT of KES 8.90Bn being a 23.61% y/y growth.
