Standard Chartered posts a 5 per cent growth in pre-tax profits for Half one 2019

Standard Chartered Bank Kenya Limited today releases its results for the six months ended 30 June 2019.

“We have positioned ourselves to disrupt with digital, reinforce market leadership in wealth management and increase our cross-border network business as we support and grow with our clients. We have been prudent in managing our balance sheet focusing on sustainable growth, underpinned by strong capital and liquidity ratios. This has delivered a 5 per cent growth in pre-tax profits to KShs 6.9 billion.’’ Kariuki Ngari, Chief Executive Officer.

Net interest income remained flat broadly due to compressed margins.

  • Interest income declined 7 per cent to KShs 12.7 billion driven by lower average investment in government securities in the current period coupled with declining yields. Interest income from customer loans and advances remained flat due to lower comparative rates.
  • Total interest expense decreased by 26 per cent to KShs 2.9 billion from proactive management of the balance sheet.

Non-interest income decreased by 2 per cent year-on-year to KShs 4.7 billion impacted by a slowdown in corporate finance.

Operating expenses are up by 6 per cent driven by investments in technology, cyber security and staff.

Loan impairment was 70% per cent lower than in the same period last year reflecting on going management actions to improve overall asset quality.

Loans and advances to customers increased by 1 per cent to KShs 120 billion compared to KShs 119 billion in December 2018 as we continued to focus on higher quality asset origination to ensure we grow our balance sheet in a sustainable manner.

Customer deposits are up 2 per cent to KShs 229 billion compared to KShs 224 billion in December 2018 driven by higher customer account balances supported by new channels.

Gross non-performing loans at KShs 19.8 billion are down 9 per cent from the end of 2018. Overall credit quality remains stable as we continue to focus on the quality of the balance sheet. The cover ratio of 67 per cent remains above the industry average of 35 per cent.

The Bank is well capitalised to support sustainable growth opportunities.

  • The total capital ratio is at 18.55 per cent with a prudent surplus to regulatory requirements; and
  • We remain a customer deposit funded bank with a liquidity ratio of 67 per cent.

The bank has delivered a year-on-year improvement in performance and continues to pursue sustainable growth for the long-term. Standard Chartered Bank Kenya Limited is putting even greater focus on clients and customers to build deep and long-standing relationships. The bank has invested in solution offerings to enhance client experience, strengthen information & cyber security, and combat financial crime.

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