Nairobi — Stanbic Bank has declared an interim dividend of Sh1.84 per share as profit grows to Sh7.2 billion in the half year ending June 2024.

The lender, which has operations in Kenya and South Sudan, attributes a 2 percent growth in profit after tax to a surging net interest income, which expanded by 4 percent to Sh12.6 billion on the back of improved average lending book as well as higher asset yield.

It also links the surge to a 30 percent balance sheet growth from Sh384 billion to Sh498 billion.

In the period, operating costs also declined by 7 percent.

"Despite a broadly positive economic outlook in Kenya and the region, the first half of 2024 was a mixed economic landscape," Stanbic Bank Kenya and South Sudan Chief Executive Joshua Oigara said.

"The appreciation of the Kenya Shilling against the Dollar bolstered foreign exchange reserves and provided some economic stability," Oigara added.

"However, severe floods in between the months of March to May, caused extensive damage to infrastructure, agriculture, and homes, disrupting economic activities and necessitating substantial recovery efforts. Additionally, the latter part of the half was characterised by civil protests."

Customer deposits also rose by 39 percent to Sh360 billion.

"Our operating results indicate that we continue fostering economic growth, as evidenced by significant growth in the balance sheet driven by investments in key strategic sectors to catalyse sustainable economic development," the Bank's Chief Financial and Value Officer Dennis Musau stated.

"The strong growth in customer deposits is a testament to the trust our clients have in us and validates our significant investments in enhancing the customer experience."