StanChart pre-tax profit jumps 68 per cent to Sh9.3b

By Standard Reporter

Standard Chartered Bank yesterday announced superb results for the third quarter of 2012 with income rising 42 per cent to Sh16.18 billion and operating profit before tax rising 68 per cent to Sh9.24 billion.

The bank has seen substantial income growth momentum across both businesses year-on-year with consumer banking revenue growing by 29 per cent, while wholesale banking revenue grew by 54 per cent.

Stanchart chief executive Richard Etemesi attributed the good performance to the benefits of sticking to a clear and consistent strategy; of investing for growth; disciplined management, 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 said, adding that the results demonstrate the bank’s commitment to delivering consistent performance.

“These are a great set of results and we are delivering on our promises. We are very pleased with our third quarter performance,” said Etemesi.

“Consumer banking income momentum has continued while wholesale banking has also had a strong third quarter with a record performance in client income, contributing to the total wholesale bank income.”

The bank’s loans and advances grew by eight per cent to Sh101.6 billion due to growth in both consumer and corporate assets. On the other hand, customer deposits grew by 12 per cent to Sh136 billion. The net bad debt charge increased from Sh443 million in the third quarter to Sh654 million in the third quarter of 2012.

The bank’s cost income ratio has decreased to 39 per cent in the third quarter of 2012 compared to 48 per cent  in the same period in 2011.

Etemesi said, “both the businesses enter the last quarter with good momentum, but we remain vigilant about the global outlook and the uncertainties political environment.”

 The Bank has not declared an interim dividend.