Standard Chartered Bank Kenya posted a KSh 15.8 billion net profit in the 9 months to September, a 63% uptick from KSh 9.7 billion recorded in the same period in 2023.
- The growth was fueled by a 32.7% surge in revenues to KSh 39.1 billion underpinned by double digit increases in both income from funded assets and non-funded income.
- Net interest income grew by 17% to KSh 24.8 billion on higher returns from investments with non-funded income almost doubling, increasing to KSh 14.2 billion on the back of an uptick in fees and commissions coupled with increased forex trading income.
- Customer loans ended the quarter 5.4% higher at KSh 151.3 billion while customer deposits edged lower 4.8% to KSh 284.4 billion as the lender continued to expand their affluent and retail banking products.
“We have delivered a strong performance in the third quarter with profit before tax up 64 per cent driven by strong topline growth, and well managed costs,” Kariuki Ngari, the lender’s Chief Executive Officer (CEO), said in a statement.
Despite a 48.4% downtick in the gross non-performing loans, the bank increased the loan loss provisions by 7.4% to KSh 1.96 billion reflecting a prudent strategy.
Staff costs and the impairment provisions fueled the 5.4% increase in operating expenses to KSh 16.6 billion. The lender expanded its investments in government securities by 22% to KSh 65.4 billion. Earnings per share grew by 67.3% to KSh 41.60, from KSh 25.44 in Q3 2023, driven by robust growth in total operating income.
“We are optimistic as we get into the fourth quarter of an improving macro environment characterized by declining interest rates, falling inflation and stable currency,” he added.
Standard chartered closed the previous trading session at the Nairobi bourse at KSh 234.00, a 44.4% gain in the year-to-date performance. The lender did not issue an interim dividend for the period.
