The latest full year financial results for Stanbic Holdings Plc for the year ended December 31, 2025, reflect a period of a strong balance sheet expansion and steadfast shareholder returns, despite a challenging transition in the operating environment. The groups total assets saw a robust surge of 19.0%, climbing to KES 541.3 billion from KES 454.8 billion in the previous year.
The expansion in the balance sheet was driven by growth in deposits as well as the loan book. The deposit base expanded by 23.5%, the highest year-on-year growth recorded since FY 2018. The loan book posted a 24.4% jump to KES 366.5 billion, to represent 67.7% of the asset base. Loans and advances to banks grew by 38.8% YoY to KES 123.7 billion – driven by interbank placements, while those to customers edged higher by 18.6% to KES 272.9 billion on account of increased credit demand in the operating period.
Stanbic Earnings Remain Flat in FY 2025
While the balance sheet expanded, Stanbic Plc faced headwinds in its profit and loss with earnings remaining largely flat in FY 2025 when compared to FY 2024. Net interest income declined 1% to KES 24.1 billion on account of the impact of the 225 basis points cuts in the CBR in the period under review. Non-interest income also declined by 6.4% to KES 14.4 billion on account of a 200 bps decline in FX margins.
As a result, total operating income contracted by 3.1% to KES 38.5 billion, with total operating expenses declining by 1.6% to KES 18 billion. The drop in key revenue lines as well as the operating income cascaded to the pre-tax profits, which declined by a marginal 0.2% to KES 18.9 billion. The net result for the year was KES 13.7 billion, with Per Share Earnings remaining flat at KES 34.70.
Stanbic Bumps Dividend Despite Lackluster Earnings
The primary highlight for investors remains the board’s commitment to high payout ratios. Following an interim dividend payment of KES 3.80 per share, Stanbic’s Board of Directors recommended a final dividend of KES 18.55 per share, bringing the total full-year dividend to KES 22.35, reflecting a 7.8% growth from 2024. This translates to a dividend payout ratio of 70.2% (FY 2024: 59.8%).
Stanbic Holdings is currently trading at KES 256.75, which translates to a Price-to-Earnings Ratio of 7.4 and a dividend yield of 8.7%. The book closure for the final KES 18.55 dividend per share has been set for 15 May 2026.
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