Standard Chartered Bank Kenya has reported a 19% improvement in net profit in the first quarter of 2021. The tier-one lender posted a net profit of KSh2.39 billion at the end of March 2021, compared to a net profit of KSh2.01 billion at the end of March 2020.
The rise in net profit in the first quarter of 2021 was supported by an improvement in non-interest income and a decline in operating expenses. Non-interest income rose to KSh1.999 billion in the three months through March 2021, from KSh1.905 billion in the same period a year ago. However, the bank’s interest income fell by 9% to KSh5.563 billion in March 2021 from KSh6.102 billion in March 2020.
Standard Chartered, which revealed plans to cut its staff numbers by 200 in November last year, reduced its total operating expenses by 15% to KSh4.595 billion at the end of Q1 2021, from KSh5.383 billion in the same period in 2020.
The bank’s customer deposits increased to KSh265.2 billion in the first three months of 2021 from KSh243.6 billion in the same period last year. Loans and advances to customers dipped to KSh117.9 billion in Q1 2021 from KSh125.5 billion in Q1 2020.
The lender posted an 11% rise in bad loans in the period under review. Its gross non-performing loans jumped to KSh22.3 billion at the end of March 2021 from KSh20.02 billion at the end of March 2020.