Standard Chartered Bank Kenya (SCBK) Limited has announced a slight fall in net earnings to KSh6.2 Billion for the nine-month period ending 30th September 2019. This is compared to net earnings of KSh 6.3 Billion over a similar period last year.
A drop in the London-based lender earnings, also listed at the NSE, can be traced to a decline in its Total Interest Income which fell from KSh 20.3 billion in Q3 2018 to Sh 19.1 billion in Q3 2019.
Interest income from Government Securities fell from KSh 9.5 billion in Q3 2018 to KSh 8.1 billion at the end of September 2019. Other Interest income also declined from KSh 514.5 million to KSh 140.2 million.
SCBK also experienced a rise in staff costs from KSh 5.1 billion to KSh 5.6 billion at the end of the nine months of this year.
The Balance Sheet size of the lender grew from KSh 288.6 billion to KSh 294.5 billion during the period under consideration.
Customer deposits increased marginally from Sh 288.6 billion in September 2018 to KSh 294.5 billion at the end of the third quarter of this financial year.
Interest income from loans and advances grew from KSh 9.9 billion to KSh 10.1 billion as lenders kept off riskier individual borrower under the controlled loan interest rates regime.
Net loans and advances to customers increased to KSh 118.5 billion in Q3, 2019 from KSh 111.0 billion over a similar period last year.
Analysts predict that ripple effects of a slowing economy and impact of the rate cap law, which has since been repealed, hit bottom lines of more lenders in the third quarter.
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