Standard Chartered Q1 profit rises by 20 per cent to Ksh.2.4 billion

Standard Chartered Q1 profit rises by 20 per cent to Ksh.2.4 billion

Standard Chartered Bank Kenya has posted a 20 per cent growth in earnings through its first quarter operations to March 2021 with profits rising to Ksh.2.4 billion.

The improved profitability has been anchored on cost containment measures alongside a steady operating income base.

Stan Chart’s non-interest-related expenses fell by 7.5 per cent in the period to Ksh.3.7 billion on the backdrop of the completion of a staff rationalization exercise and lower loan loss provisions.

At the same time, the lender’s total operating income rose marginally by 1.4 per cent to Ksh.7.1 billion supported by a rebound in non-interest-related income.

Total non-interest funded income (NFI) jumped to Ksh.2.5 billion from Ksh.2.2 billion offsetting an 8.2 per cent decrease in total interest income to Ksh.5.6 billion.

The banks operating income further found anchoring in a 30.6 per cent decline in total interest expenses to Ksh.971.7 million.

The reduction of the bank’s bad loan provisions was nevertheless against an 11.5 per cent rise in gross non-performing loans (NPLs) to Ksh.22.3 billion.

“Our first quarter performance was strongly buoyed by positive business momentum leading to improved transaction volumes particularly in wealth management, low credit impairment charges and operating cost efficiencies. Asset quality remained resilient and stable in the first quarter, although we continue to remain alert to the continued impact of COVID-19,” said Standard Chartered Chief Executive Officer Kariuki Ngari.

Subsequent to the profit growth, Stan Chart’s earnings per share (EPS) have improved to Ksh.6.22 from Ksh.5.73 a year earlier.

The lender’s assets now stand at Ksh.339.3 billion to include Ksh.117.9 billion in net loans and advances to customers.

The bank’s loan book has nevertheless registered a 6.1 per cent slide from Ksh.125.5 billion last year.

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