Standard Chartered Bank Kenya on Wednesday posted a 16 per cent rise in pretax profit to Ksh 3.93 billion in the first quarter ended 31 March 2022.
This was attributed to rising interest income which rose 7 per cent to Ksh 4.92 billion shillings.
“Our first quarter performance was strong despite volatile and challenging market conditions. The Bank remains well capitalised and highly liquid with a total capital ratio of 17.62 per cent and a liquidity ratio of 71.56 per cent,” Kariuki Ngari, Chief Executive Officer, said.
The lender’s operating expenses were up 9 per cent KSh3.5billion from KSh3.2billion attributed to increased investment spending on transformational digital initiatives including partnerships.
Loan impairment declined by 121 per cent reflecting the impact of a release in management overlays, primarily relating to Covid-19.
Net loans and advances to customers increased 2 per cent from 31 December 2021 while asset quality remained stable.
Customer deposits remained flat from 31 December 2021 at Sh265 billion.
Financial performance summary
|
2022 vs 2021 |
|||||||
| 31.3.2022 | 31.3.2021 | Better/(Worse) | |||||
| KShs million | KShs million | % | |||||
| Net interest income | 4,922 | 4,592 | 7 | ||||
| Non funded income | 2,487 | 2,485 | 0 | ||||
| Total operating income | 7,409 | 7,077 | 5 | ||||
| Operating expenses | (3,567) | (3,267) | (9) | ||||
| Loan impairment | 86 | (413) | 121 | ||||
| Profit before taxation | 3,928 | 3,397 | 16 | ||||
| Taxation | (1,163) | (1,005) | (16) | ||||
| Profit after taxation | 2,765 | 2,392 | 16 | ||||
| Increase/ | |||||||
| 31.3.2022 | 31.12.2021 | (Decrease) | |||||
| KShs million | KShs million | % | |||||
| Balance Sheet | |||||||
| Loans and advances to customers | 128,093 | 125,975 | 2 | ||||
| Customer deposits | 265,381 | 265,469 | (0) | ||||
| Loans to deposits ratio | 48% | 47% | |||||
| Capital | |||||||
| Core capital | 41,394 | 40,822 | |||||
| Core capital ratio | 15.35% | 15.53% | |||||
| Total capital | 47,522 | 46,670 | |||||
| Total capital ratio | 17.62% | 17.76% |
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