Standard Chartered Bank Kenya has issued a profit warning saying that “its current performance forecast indicates a substantial decline in the profit after tax for the year ending 31st December 2020 compared to the prior year.”
StanChart is the latest Kenyan lender to sound a profit alert after KCB Group, I&M Holdings, and HF Group. Other banks like Diamond Trust Bank and Equity bank have reported significant decline in their latest financial results.
The bank reported a 30% decline in net profit in the nine moths to September compared to the same period in 2019.
In early November, Standard Chartered bank Kenya announced plans to send home 200 staff members as it sought to cut expenses in the prevailing economic conditions.
The bank’s investment in digital channels has proved useful during this pandemic season as it has enabled the lender to meet clients’ needs despite the covid19 linked challenges.
In the notice to investors, StanChart says that it has a robust balance sheet and adequate capital and liquidity. The lender has a positive outlook for the coming year and expects the release of the covid19 vaccines to improve the business environment locally and globally.
