Standard Chartered Bank Kenya Limited (SCBK) has posted a 30.6% drop in Q3, 2020 Net Earnings to KSh 4.3 Billion from the KSh 6.2 Billion in Q3, 2019, a decline of KSh 1.9 Billion.
This subdued financial performance by the high street lender follows a considerable provision for loan losses which increased significantly from KSh 728.2 Million in Q3, 2019 to KSh 2.7 Billion.
The lender’s Total Interest Income from loans to customers, investment in government paper and deposits held with other financial institutions, was down to KSh 17.9 Billion in Q3, 2020 from KSh 19.1 Billion recorded in Q3, 2019.
Its balance sheet grew in size from KSh 290.6 Billion to KSh 314.4 Billion during the period under review.
Loans to customers rose from KSh 118.5 Billion to KSh 131.7 Billion. This growth pushed up fees and commissions earned by the bank’s lending activities to KSh 227.2 Billion in Q3, 2020 from KSh 207.4 Billion over a similar period last year.
Total Shareholders funds, the amount that owners of the bank will be paid were the lender be liquidated, rose from KSh 47.9 Billion to KSh 50.2 Billion.
The lender’s pre-tax profit declined to KSh 6.6 Billion from KSh 9.1 Billion in Q3, 2019.
Earnings per Share declined to KSh 11.13 in Q3, 2020, from KSh 16.15 in the prior period.