Standard Chartered Bank posted a profit after tax of 20 shillings billion in 2023, marking a significant increase of 6.23 billion shillings from the previous year. The impressive growth was driven by higher earnings from both interest and non-interest income streams.
The lender had recorded a net profit of Sh13.8 billion in 2022.
Net interest income rose by 13 percent to Sh33.27 billion, supported by increased lending volumes and improved margins. At the same time, non-interest income soared by 40 percent to Sh17.41 billion, fueled by higher transactional volumes and stronger margins in Transaction Services, Markets, and Wealth Solutions.
“Our strategy of leveraging differentiated cross-border capabilities for corporate and institutional clients, alongside premium wealth management solutions for affluent customers, has yielded positive results,” said Standard Chartered CEO Kariuki Ngari.
“We also maintained strong cost discipline, achieving a positive income-to-cost jaws of 13%.”
The bank reported a 30 percent reduction in loan impairment losses, reflecting prudent credit management and successful loan recoveries.
However, customer deposits declined by 14 percent to Sh295.69 billion, while loans and advances to customers fell by 7 percent to Sh151.65 billion. The declines were attributed to the appreciation of the Kenyan Shilling and lower client utilization.
Despite these setbacks, the bank maintained a robust liquidity position, with a liquidity ratio of 67.59 percent—well above the regulatory minimum of 20 percent. Additionally, its total capital ratio stood at 19.55 percent, reinforcing its financial strength.
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