StanChart Kenya has recorded a 12.5% increase in earnings per share (EPS) to KES 25.44 for the third quarter of 2023, up from KES 22.61 in the same period last year.
Standard Chartered Kenya also maintained its interim dividend per share (DPS) at KES 6, reflecting its confidence in its future prospects.
“We have delivered a solid set of results for the nine months ended September 30, 2023, with profit before tax increasing 11% year on year. Strong top-line growth of 20 per cent mitigated the growth in operating costs of 20 per cent attributed to inflationary pressure and investment spend on our digital capabilities,” said Kariuki Ngari, CEO in an emailed statement.
“The external environment remains complex, but we remain steadfast in providing strong support for our clients through this period.”
The bank’s total assets grew by 0.98% to KES 369.7 billion, driven by a 5.51% increase in its loan book to KES 143.6 billion. The bank’s net interest income rose by 34.5% to KES 21.2 billion as a result of improved margins and a lower cost of funds.
StanChart’s non-interest income also increased by 9.8% to KES 10.4 billion, supported by growth in fees and commissions, foreign exchange trading, and other income.
The bank’s operating expenses increased by 17.9% to KES 15.1 billion, mainly due to higher staff costs, depreciation, and amortization.
The bank’s provision for loan losses surged by 193.4% to KES 1.8 billion, reflecting the impact of the COVID-19 pandemic on the quality of its loan portfolio.
Its gross non-performing loans (NPLs) ratio improved slightly to 16.4%, down from 16.7% in the previous quarter, as the bank reduced its gross NPLs by 1.95% to KES 23.6 billion.
The bank’s profit after tax (PAT) increased by 11.8% to KES 9.7 billion, compared to KES 8.7 billion in the same period last year.
The bank’s return on average equity (ROAE) improved to 20.1%, up from 19.6% in the previous quarter.
The bank’s capital adequacy ratio (CAR) remained strong at 19.4%, well above the regulatory minimum of 14.5% of the economy and our ability to deliver sustainable value to our shareholders.”
