Standard Chartered Bank Kenya Limited has announced a robust financial performance for the first half of 2024, with profit before tax soaring by 50 percent to KShs 14.5 billion.
This impressive result is attributed to a 25 percent rise in operating income, supported by a 19 percent increase in net interest income and a 36 percent growth in non-interest income from higher transactional volumes.
Kariuki Ngari, Chief Executive Officer, highlighted the bank’s strong performance amidst a challenging economic environment. “We achieved significant growth in the first half of the year, driven by increased transactional volumes and solid cost discipline,” Ngari stated. He also noted that the bank’s cost-income ratio improved by 16 percent, reflecting effective management and operational efficiencies.
The bank’s balance sheet remains robust and highly liquid. Net loans and advances to customers fell by 8 percent due to foreign currency revaluation linked to the strengthening Kenyan Shilling. Despite this, the asset quality improved, with the non-performing loans ratio decreasing from 9.7 percent at the end of 2023 to 8.4 percent .
Customer deposits also declined by 19 percent, influenced by currency revaluation and reduced local currency deposits. Nevertheless, the bank maintained a high funding quality, with current and savings accounts representing 96 percent of total deposits. The liquidity ratio stands at 63.2 percent, well above the regulatory requirement of 20 percent, and the total capital ratio is at 18.87 percent, exceeding regulatory minimums.
In light of its strong performance, the bank will pay an interim dividend of KShs 8.00 per share, to be disbursed to shareholders on October 8, 2024. The dividend underscores the bank’s commitment to delivering sustainable shareholder returns.
“We are aware of the global and local macroeconomic challenges but remain confident in our strategy and our ability to capitalize on growth opportunities while managing risks effectively. Our team’s dedication to client service continues to reinforce our brand promise of being here for good.” Ngari added