StanChart Bank of Kenya’s (SCBK) net earnings for the 2021 financial year rose 66.23% to KSh 9.04Billion while the Earnings Per Share, which shows the lender’s profitability also grew by 62.76% to KSh 23.49.
These impressive numbers in the bottom line were mainly driven by growth in operating income at 6.41% year on year to KSh 29.16Billion and a decline in Total Operating Expenses, which fell 17.21% year on year to KSh 16.57Billion.
The lender’s balance sheet expansion remained flat with the loan book rising 3.66% to KSh 125.97Billion, growing faster than customer deposits at 3.50% to KSh 265.47Billion.
Non-Interest income grew by 24.91% to KSh 10.35Billion, driven mainly by income from financial markets, custodial and wealth management businesses.
Digitization continues to pay off at StanChart Bank Kenya with cost to income ratio improved 1621bps to 56.80% underpinned the bank’s push for digital transaction channels.
The improvement was driven by a faster decline in operating expenses, which was down 17.21% y/y to KSh 16.57Billion, with staff costs declining 18.30% y/y.
Additionally, the loan loss provision declined 46.38% y/y to KSh 2.08Billion highlighting the expectations of an improving lending environment.
An announcement by Directors of SCBK of a total dividend of KSh 19.00 triggered a share price rally. The dividend will be payable to shareholders registered on the Company’s register at the close of business on 27th April 2022 and will be paid on or after 25th May 2022.
The directors have also announced payment of a final dividend on the non-redeemable, non-cumulative, non-voting, non-participating and non-convertible preference shares for the period 3oth June 2021 to 30th December 2021 at the rate of 65 per annum on the issue price of each share. The register will remain closed on 28th April 2022 to prepare dividend warrants.
Analysts expect SCBK to record improved efficiency attributable to the continued
use of digital channels, including offerings in custodial services, financial markets and wealth management services.
An announcement of an interim dividend is expected to make the counter attractive and is likely to cause a share price rally in the coming days.
SCBK is scheduled to hold its 36th AGM virtually on 25th May 2022.
ALSO READ: StanChart Bank Kenya Q3, 2021 Net Earnings up 46.67% to KSh 6.36 Billion
StanChart Bank Plc to cut down its Global Branch Network, Staff
