Standard Chartered Bank of Kenya has posted a 10.5% decline in Q1 net profit to Sh1.6 billion compared to Sh1.9 billion in the same quarter in 2017.
The lender attributed the drop to the new IFRS 9 reporting regulations that came into effect in January 2018 resulting into a steep increase in loan impairment by 38% to Sh 1.1 billion.
The Bank’s Chief Executive Lamin Manjang noted, “Total operating income is up year-on-year. However pre-tax profit is down 7.7 percent primarily due to higher costs from increased investment in our Digital by Design strategy and loan impairment which is now on an IFRS 9 basis.”
Key Highlights
- Total interest income for the period grew 7.7% to Sh 6.8 Billion while the total interest expense was up 16.4% to Sh 1.9 Billion.
- Net interest income increased by a slight margin of 4.5% to Sh 4.8 Billion as non-interest income grew 6.5% sh 2.3 Billion.
- Total operating expenses 9.6% to Sh 3.3 Billion as loan loss provision expenses increased by 38% to Sh 1.1 Billion.
- Loans and advances to customers fell by 9.9% quarter on quarter and -2.6% year on year to Sh 113.8 Billion.
- Customer deposits grew by 13.2% to Sh 234 Billion as Gross Non Performing Loans increased by 16% to Sh 17.8 Billion.
