Standard Chartered Bank has today released its results for the period ended 30 June 2024. the bank made Ksh 14.5 billion profit before tax for the first half of 2024.
Kariuki Ngari, Chief Executive Officer, said, “We delivered a strong set of results for the first half of the year with profit before tax up 50 per cent to KShs 14.5 billion. Our top-line recorded growth of 25 per cent, supported by continued momentum that saw strong growth in Non funded income ( NFI) from increased transactional volumes, as well strong net interest income. Good cost discipline has enabled us to generate significantly positive cost-income jaws of 16 per cent. Our business remains well capitalised, 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.”
Summary financial performance
- Operating income increased by 25 per cent driven by;
- Net interest income increase of 19 per cent due to volume growth and improved margins.
- Non-interest income increase of 36 per cent from increased transactional volumes.
- Operating expenses were up 9 per cent primarily from increased staff costs and continued investment in digital capabilities.
- Loan impairment charge decreased by 23 per cent on the back of improved portfolio metrics and 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 per cent from 31 December 2023 primarily on account foreign currency revaluation on the back of a strengthening Kenya Shilling. Asset quality continued to improve with non-performing loans ratio down to 8.4 per cent from 9.7 per cent as at 31 December 2023.
- Customer deposits decreased by 19 per cent 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 per cent of total customer deposits.
- The liquidity ratio at 63.2 per cent remains well above the regulatory threshold of 20 per cent.
- Total capital ratio of 18.87 per cent is above the regulatory minimum and well positioned to continue supporting our strategy execution.
On the back of the strong performance, the Directors has announced 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.