Stanbic Bank Kenya has opened the 2026 banking earnings season, once again becoming the first major lender to publish quarterly results for the period ended 31 March 2026, maintaining its habitual early reporting trend.
The performance shows a modest rebound in core lending income, a significant deposit milestone, and continued strain on non-interest revenue streams.
Profit after tax rose by 5.5% to KSh 3.52 billion, up from KSh 3.33 billion in the same quarter last year. This growth was supported by stronger net interest income and a steep 59.3% drop in loan loss provisions to KSh 0.35 billion.
Overall operating income increased by 4.3% to KSh 9.95 billion, marking the first quarterly uptick after a 3.1% decline in full-year revenue previously.
A key highlight was the bank’s deposit base crossing KSh 400 billion for the first time, reaching KSh 411 billion, a 21.7% increase year-on-year from KSh 337.63 billion.
Total assets climbed 22.6% to KSh 551.72 billion, while the loan book expanded by 5.8% to KSh 258.16 billion.
Asset quality improved, with the non-performing loan ratio easing to 14.9% from 17.1%, while liquidity strengthened significantly to 61%, up from 48.3%.
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Net interest income rose 11.7% to KSh 7.57 billion, largely supported by lower funding costs rather than aggressive loan growth. Interest income edged up modestly, while interest expenses fell sharply, reflecting the impact of recent Central Bank of Kenya rate cuts that reduced the cost of funds.
However, the strong deposit growth did not lead to proportional increases in interest expenses, as banks continue to benefit from faster repricing of liabilities compared to assets. The sustainability of this margin improvement will depend on how lending rates behave as monetary policy stabilises.
On the downside, non-interest income dropped 13.8% to KSh 2.38 billion, extending a three-year downward trend. The sharpest drag came from foreign exchange trading income, which has plunged 83.5% since Q1 2023, following the stabilisation of the shilling after its earlier period of volatility.
With currency gains now limited, the bank is leaning more on transaction fees, commissions, and bancassurance to support this revenue stream.
Operating expenses declined by 7.8% to KSh 5.03 billion, further boosting profitability alongside lower provisioning costs.
Earnings per share increased to KSh 20.61 from KSh 19.54 a year earlier. No interim dividend was declared, consistent with Stanbic’s usual practice of paying dividends at full-year stage.
