Standard Charterd profit jumps to Sh6.5b

By Kamau Macharia

Standard Chartered Bank posted good results for the first half of this year, with income rising 54 per cent to Sh 11 billion. Operating profit before tax rose 88 per cent to Sh6.5 billion.

The bank has seen substantial income growth momentum across both businesses during the first half of the year, with Consumer Banking revenue growing by 45 per cent. Wholesale banking revenue grew by 55 per cent.

The Bank’s Chief Executive Officer Richard Etemesi said the results demonstrate the bank’s commitment to delivering consistent and sustained performance.

 “These are a great set of results and we are delivering on our promises. We are pleased with our first half year performance. We have continued to invest in both our businesses,” he observed.

 Consumer banking income momentum has continued while wholesale banking has also had a strong first half with a record performance in client income, contributing significantly to the total wholesale bank income,” said Etemesi.

Etemesi also attributed the good performance to the benefits of sticking to a clear and consistent strategy, investing for growth, disciplined management of capital, liquidity, costs and risks. “We have remained disciplined on costs and processes and innovative on products and services.”

“Our improved technology platforms have enabled us to serve new business segments and respond to the changing business environment,” he added.

The bank’s loans and advances grew by 24 per cent to Sh104.1 billion due to growth in consumer and corporate assets.

Customer deposits grew by 27 per cent to Sh138.2 billion. The net bad debt charge increased from Sh233 million in the first half of last year to Sh355 million in the first half of this year.

The bank’s cost income ratio has decreased to 38 per cent in the first half of this year compared to 48 per cent in the same period in 2011.

Etemesi said, “Both the businesses enter the second half with good momentum, but we remain vigilant about the global outlook and the uncertainties within the political and economic environment.

“We will continue to look for opportunities and take advantage of these to build and grow our business. The Bank is in great shape, has good momentum, and is superbly positioned for the future.”