Standard Chartered Bank Kenya has reported a 70 percent jump in profit before tax in its 2021 full-year earnings, the highest rate in five years driven by lower costs and resilient income.
While releasing the full-year earnings, Chemutai Murgor, the bank’s Chief Finance Officer (CFO) said the firm’s net interest income decreased 2 percent with increased volumes more than offset by lower average yields.
The total operating income increased 6 percent.
Over the same period, the bank’s non-interest income increased by 25 percent with strong performances in wealth management and financial markets.
The bank recently launched a money market fund that allows users to save from as low as Sh1,000, earn competitive returns and withdraw anytime.
Customer deposits increased by 3 percent with current and savings accounts making up 91 percent of total customer deposits.
Increased investment in transformational digital initiatives led to a 10 percent drop in the firm’s operating expenses.
“Looking at our Balance Sheet, we are happy that it remains strong and highly liquid. Loans and advances to our clients increased by 4 percent. The overall asset quality remained stable,” Chemutai Murgor, Standard Chartered Chief Finance Officer (CFO)
Commenting on the results, Chief Executive Officer, Kariuki Ngari said that the firm will continue to focus on its differentiated corporate network and affluent personal businesses through augmented digital capabilities with a focus on the mass retail segment.
He said the firm is wary of geopolitical tension between Ukraine and Russia but remains hopeful as COVID-19 cases continue to decline.
“We are remaining cautious of potential threats of new variants, inflation, the impact of the war, and upcoming General elections, these are the real risk we see could affect our outlook for 2022,” the bank’s Chief Executive Officer, Kariuki Ngari
The Board has recommended the payment of a final dividend of Shs 14.00 for every ordinary share of Shs 5.00. An interim dividend of Shs 5.00 was declared and paid in December 2021.
“This will bring the total dividend for the year to Shs 19.00 per ordinary share which is 81 percent higher than that paid in 2020.” – CEO
Read also; StanChart Bank Kenya Q3, 2021 Net Earnings up 46.67% to KSh 6.36 Billion.
