Standard Chartered half year profit soars to Ksh.4.9 billion

Standard Chartered half year profit soars to Ksh.4.9 billion

Standard Chartered Bank Kenya has posted a 53 per cent jump in half year earnings after booking a Ksh.4.9 billion net profit from Ksh.3.2 billion last year. The notable improvement in profitability for the tier one lender is greatly attributable to a recovery in operating income and lesser costs. For instance, Stan-Chart’s total operating income has increased by a marginal 2.2 per cent to reach Ksh.14.1 billion on the back of higher non-interest funded income (NFI) which offset a deceleration in interest income. NFI was up 13.6 per cent at Ksh.5 billion from greater non-loan fees and commissions in the period. At the same time, the lender has cut its non-interest expenses significantly to Ksh.7.3 billion from a higher Ksh.8.7 billion. This from largely from truncated loan-loss provisions which slowed down to Ksh.638.5 million from a higher Ksh.1.6 billion. Meanwhile, Stan-Chart’s total assets hit Ksh.345.6 billion in the period despite a marginal decline in net loans and advances to customers to Ksh.130.3 billion. Standard Chartered Bank Kenya Chief Executive Officer Kariuki Ngari has termed the performance as positive as the lender continues to explore cost efficiencies to retain the momentum for growth. “I am encouraged by our positive performance in the first half of the year helped by strong underlying business momentum, improved loan impairments and operating cost efficiencies. Asset quality remained resilient and stable in the first half, although we continue to remain alert to the impact of a volatile recovery,” he said. “Against this backdrop we will operate dynamically with an eye to the opportunities for growth and manage our balance sheet prudently even as we continue to support our clients whilst pursuing sustainable growth.” Stan-Chart’s earnings per share have stretched to Ksh.12.69 from a lower Ksh.9.17 last year subsequent to the profit surge. Nevertheless, the lender’s board of directors have not recommended the payment of an interim dividend.

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