Standard Chartered Bank Kenya announces record dividends of KSh 45 per share following a 45% profit increase. Learn about key growth drivers and strategic focus.
Standard Chartered Bank Kenya will issue a dividend payout of KSh 45 per ordinary share, a substantial 55% increase compared to the previous year.
This remarkable distribution follows a year of exceptional financial performance, with the bank’s net profit surging by 45% to KSh 20.06 billion.
CEO and Managing Director, Kariuki Ngari, attributed this success to a “record performance in 2024,” driven by “strong topline growth, good business momentum and excellent execution of our strategy.”
The dividend comprises a final payment of KSh 37 per share, supplemented by an interim dividend of KSh 8. The total dividend payout to shareholders will reach KSh13.9 billion.
This growth in profitability was largely fueled by a 20% increase in interest income, reaching KSh 38.81 billion, and significant gains from foreign exchange trading.
Non-interest income also saw a dramatic rise, jumping by 40% to KSh 17.41 billion. The bank highlighted that “non-interest income was up 40 per cent driven by strong transaction services, markets and wealth solutions supported by a well-positioned trading book.”
Income from loans and advances rose to KSh 22.83 billion, while revenue from government securities increased to KSh 9.75 billion.
Despite the impressive profit growth, the bank’s balance sheet experienced contraction. Total assets decreased to KSh 384.57 billion, customer deposits fell to KSh 295.69 billion, and loans to customers declined to KSh 151.64 billion.
The bank clarified that “net loans and customer advances declined seven per cent primarily because of foreign currency revaluation on the back of a strengthening Kenya Shilling and reduced client utilisation,” and similarly, “customer deposits were down 14 per cent as a result of the reduction in customer balances and foreign currency revaluation on the back of a strengthening Kenya Shilling.”
Regarding expenses, the bank emphasized effective cost management, with Ngari stating, “We managed our costs well delivering significant positive income-to-cost jaws of 13 per cent.”
Operating expenses increased marginally to KSh 22.46 billion, while loan loss provisions decreased to KSh 2.38 billion, and non-performing loans dropped by 30% to KSh 12.02 billion.
Looking ahead, Standard Chartered Bank Kenya is strategically focusing on its Corporate Investment Business (CIB) and Wealth & Retail Banking (WRB) segments.
The bank also sees potential in growing Middle Eastern investment in Africa and is preparing for potential geopolitical shifts, including the impact of a second Trump presidency.
A strong emphasis is placed on “digital transformation and personalized wealth solutions,” with increased investment in digital capabilities. The bank maintains a strong capital position, with a liquidity ratio well above the regulatory threshold and a total capital ratio exceeding the regulatory minimum.