Stanchart delivers strong Q3 performance

By James Anyanzwa

Standard Chartered Bank Kenya (SCBK) has announced a 19 per cent growth in pre-tax profit for the third quarter of this year.

The Bank’s profit before tax (PBT) rose to Sh.6.2 billion for the nine month to end September, from Sh5.2 billion in a similar period last year.

In a statement yesterday, the bank said the enhanced performance reflected an improved balance between the bank’s Consumer and Wholesale Banking businesses, and demonstrated 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 very pleased with our third quarter performance. We have continued to invest in both our businesses," Chief Executive Mr Richard Etemesi said.

He said revenues from consumer banking gathered increased momentum, while wholesale banking registered strong performance in client income, while consumer banking continued building relationships with customers.

"Client income in wholesale banking is up strongly, reflecting the bank’s focus on deepening relationships with clients, while improving cross-sell ratios, and strengthening our product capabilities," said Etemesi.

According to the bank’s un-audited financial statements released yesterday, total income rose 16 per cent to Sh10.6 billion, compared to Sh.9.2 billion for the same period last year. Loans and advances grew 14 per cent to Sh55 billion, while customer deposits increased 12 per cent to Sh100.1 billion. Net bad debt charge declined from Sh.298.8 million to Sh.233.8 million in the same period, while total non-performing loans fell to Sh1.6 billion, a drop to 2.8 per cent of gross total loans, compared to 3.5 per cent in 2009.

Prudent approach

"This is a reflection of our prudent approach to lending and proactive risk management capability," said Etemesi.

Etemesi also attributed the good performance to the bank’s consistent strategy of investing for growth and 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 said.

Etemesi said although he was optimistic of a much better performance for the whole year, the bank would remain extremely cautious about the global economic outlook.