Standard Chartered Bank Kenya Limited has released its results for 30 June 2024.
“We delivered a strong set of results for the first half of the year with profit before tax up 50 percent to Kshs 14.5 billion. Our top-line recorded growth of 25 percent, supported by continued momentum that saw strong growth in Nonfunded income ( NFI) from increased transactional volumes and strong net interest income.
Good cost discipline has enabled us to generate significantly positive cost-income jaws of 16 percent. Our business remains well-capitalized and highly liquid with a high-quality funding mix which has allowed us to support clients during the period. We continue to actively manage our credit portfolio, remaining alert to a volatile and changing environment,” Kariuki Ngari, Chief Executive Officer, said:
Summary financial performance:
- Net interest income increase of 19 percent due to volume growth and improved margins.
- Non-interest income increase of 36 percent from increased transactional volumes.
- Operating expenses were up 9 percent primarily from increased staff costs and continued investment in digital capabilities.
- Loan impairment charge decreased by 23 percent on the back of improved portfolio metrics and the culmination of many years of actively working with clients to manage the difficult operating environment.
The balance sheet remains strong and highly liquid.
- Net loans and advances to customers decreased by 8 percent from 31 December 2023 primarily on account of foreign currency revaluation on the back of a strengthening Kenya Shilling. Asset quality continued to improve with the non-performing loans ratio down to 8.4 percent from 9.7 percent as of 31 December 2023.
- Customer deposits decreased by 19 percent as a result of foreign currency revaluation on the back of a strengthening Kenya Shilling as well as a reduction of local currency deposits. Funding quality remains high with current and savings accounts making up to 96 percent of total customer deposits.
- The liquidity ratio at 63.2 percent remains well above the regulatory threshold of 20 percent.
- Total capital ratio of 18.87 percent is above the regulatory minimum and well positioned to continue supporting our strategy execution.
Dividend
On the back of the strong performance, the Directors are pleased to announce the payment of an interim dividend of Kshs 8.00 for every ordinary share of Kshs 5.00 to be paid to shareholders on the register as at the close of business on 18 September 2024 and will be paid on or about 8 October 2024. The Board recognizes the importance of dividends to shareholders and remains committed to sustainable shareholder returns.
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