Standard Chartered Bank Kenya has registered a 49 percent jump in profits after tax to KSh 10.9 billion in the first half of 2024 from KSh 6.9 billion recorded in the same period 2023.
- The strong performance was primarily driven by a 24.9 percent uptick in the total operating income which stood at KSh 26.1 billion.
- Net interest income saw a 19.3 percent increase to KSh 16.5 billion on the back of volume growth and improved margins with the increased transactional volumes pushing the non-interest income upwards by 36 percent.
- The growth was slowed down by the 3.1 percent increase in operating expenses occasioned by the increased staff costs and continued investment in digital capabilities.
“Good cost discipline has enabled us to generate significantly positive cost-income jaws of 16 per cent. Our business remains well capitalized, highly liquid with a high-quality funding mix which has allowed us to support clients during the period. We continue to actively manage our credit portfolio, remaining alert to a volatile and changing environment.” Kariuki Ngari, Chief Executive Officer (CEO) of Standard Chartered Bank (Kenya) said.
Gross non performing loans (NPLs) decreased by 42.9 percent to KSh 13.6 billion with an 8.4 percent NPL ratio which is below the industry average – an improvement to asset quality.
Loan loss provisioning was downsized by 23 percent following the improved portfolio metrics and culmination of many years of working with core customers to manage the difficult economic environment. Net loans and advances to customers decreased by 8 per cent from 31 December 2023 primarily on account of foreign currency revaluation on the back of a strengthening Kenya Shilling.
Similarly, customer deposits decreased by 19 per cent as a result of foreign currency revaluation coupled with a reduction of local currency deposits.
Funding quality remains high with current and savings accounts making up to 96 per cent of total customer deposits.
Following the strong performance, the lender declared an interim dividend of KSh 8 for every share to be paid to shareholders on the register as at the close of business on 18 September 2024 and will be paid on or about 8 October 2024.
Standard Chartered Kenya is listed at the Nairobi Securities Exchange under the ticker symbol SCBK closing the previous trading session at KSh 195.00, a year-to-date gain of 20.4 percent.
