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StanChart first-quarter profit rises 46pc to Sh4 billion

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StanChart first-quarter profit rises 46pc to Sh4 billion

Wednesday May 17 2023
DNStandardChartered1303 (1)

Stanchart CEO Kariuki Ngari addressing shareholders on March 14, 2023. PHOTO | WILFRED NYANGARESI | NMG

Standard Chartered Bank Kenya has posted a 45.7 percent growth in net profit to Sh4 billion for the first three months to March on the back of higher income from funded and non-funded operations. 

The lender's total revenues rose  45.2 percent to Sh10.76 billion. Non-interest-funded income grew ahead of interest income at 55.5 percent to hit Sh3.9 billion compared to the previous like period. 

The growth in non-funded income was supported by a 114 percent rise in forex trading which soared to Sh2.19 billion in the three months.

The bank's net interest income meanwhile rose to Sh6.9 billion from Sh4.9 billion previously. The higher net interest income was recorded on the back of lower interest expenses which inform the cost of the bank’s funding.  

The lender's loan book expanded to Sh137.1 billion from Sh128.1 billion in a similar period last year.

The bank’s loan book has grown faster than its investments in Kenyan government securities with its holdings growing by a marginal 4.2 percent to Sh92.9 billion to mirror the industry’s ongoing diversification of investment portfolios away from government lending.

Customer deposits have meanwhile grown by 14.2 percent to Sh302.9 billion from Sh265.4 billion a year prior.

Standard Chartered non-interest expenses have nevertheless grown by 47.2 percent from Sh3.5 billion to Sh5.1 billion largely from an acceleration in loan-loss provisioning to Sh790.9 million.

At the same time last year, the lender had written back all of its loan impairment costs to the profit and loss accounts.

Despite the higher provisions, StanChart gross non-performing loans were only up marginally to Sh22.59 billion from Sh22.56 billion in March last year.

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