StanChart's net profit jumps 37pc to Sh8.7 billion
Business
By
Macharia Kamau
| Nov 23, 2022
Standard Chartered Bank Wednesday reported a 37.1 per cent increase in profit after tax for the nine months to September.
This was on the back of growth in non-funded income as well as a recovery in the economy from the ravages of Covid-19 that resulted in a drop in loan impairments.
The lender said net profit grew to Sh8.71 billion over the period compared to Sh6.36 billion over a similar nine-month period last year. The bank's board also approved an interim dividend of Sh6 per share.
"Healthy business momentum continues to drive growth with income up 10 per cent," said Chief Executive Kariuki Ngari.
"Costs increased nine per cent because of inflationary pressure as well as investment spend, whilst expected credit losses have significantly reduced year-on-year. We have achieved this performance by actively supporting our clients in an increasingly unpredictable operating environment. I am also pleased to announce that the board approved the payment of an interim dividend of Sh6 to our ordinary shareholders."
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Loan impairment declined by 77 per cent, which the bank said was due to the improved economic environment.
The bank's loan book has risen eight per cent this year to Sh136 billion as of September from Sh125.9 billion in December 2021, which the bank said reflected the recovery of its clients' businesses.
The lender's income increased 10 per cent to Sh24.56 billion compared to Sh22.72 billion in September last year, which it attributed to asset volumes growth, expansion in net interest margins and favourable market movements.
"Customer deposits continued to grow, with funding quality remaining high and savings accounts making up 93 per cent of total customer deposits," said Mr Ngari.
The results come against a backdrop of speculation that the bank could exit the Kenyan market amid ongoing regional restructuring. But the tier one lender controlled by international banking group Standard Chartered Plc, said recently it does not expect additional changes from its parent firm affecting Kenyan operations.