Connect with us

Banking & Microfinance

StanChart Net Profit for First Quarter Soar By 46 %




Standard Chartered Bank reports a significant growth in net profit for the first quarter

Standard Chartered Bank Kenya (StanChart) has reported a significant growth in net profit for the first quarter ended March, driven by higher interest income and revenue from transactions and foreign exchange trades. The bank’s net profit increased by 45.6 percent to reach Sh4 billion, compared to Sh2.7 billion in the previous year, while operating income rose by 45.2 percent to Sh10.76 billion.

Non-interest income experienced substantial growth, outpacing interest income, with a 55.5 percent increase to Sh3.9 billion from Sh2.5 billion in the same period last year.

This growth was primarily propelled by a 114 percent rise in forex trading income, reaching Sh2.19 billion from Sh1.02 billion. Net interest income also increased by 40.1 percent to Sh6.9 billion, attributed to higher earnings from loans and lower interest expenses.

Despite customer deposits growing by 14.2 percent to Sh302.9 billion, the bank managed to reduce its interest expenses by 5.4 percent to Sh701.8 million, indicating a benefit from increased non-interest-bearing accounts. StanChart’s loan book expanded by seven percent to Sh137.1 billion, contributing to a 14 percent growth in total assets to Sh388.6 billion. However, the bank reduced its investment in government securities, such as bonds and Treasury bills, by 6.2 percent to Sh95 billion, aligning with the industry trend of diversifying investment portfolios away from government lending.

The bank’s total operating expenses increased by 47.2 percent to Sh5.1 billion, primarily due to higher loan-loss provisioning, which reached Sh790.9 million. This is in contrast to the previous year when the bank had written back all of its loan impairment costs to the profit and loss accounts. Despite a marginal increase in gross non-performing loans to Sh22.59 billion from Sh22.56 billion, StanChart displayed increased conservatism by significantly boosting provisions.

StanChart’s performance aligns with the overall positive outlook for large banks in Kenya, as they are expected to set new earnings records this year. Equity Group reported a 6.6 percent growth in net profit to Sh12.3 billion, driven by higher interest income, fees, and commissions. Stanbic Bank, the main subsidiary of Stanbic Holdings, achieved an impressive 84.3 percent growth in net income, reaching Sh3.89 billion.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

What we are about. is a disruptive and intelligent news platform that interrogates, interprets and
trenchantly covers actors who are prime movers within East Africa. Possessing palpable influence and power,
these unicorns posses a contagious and unvarnished character that is seminal, triggering probable outliers to
work towards achieving these twin hallowed credentials, notably influence and power.

As a platform of record ,the brand genuflects disproportionately towards a shoe leather form of journalism. For sensibly, this deliberate choice of action acts as a trusted antidote to editorial maleficence that manifests itself in the form and shape of lazy and sedentary form of journalism. At, we covet the basic tenet of journalism, which is ,to seek the truth and report it. In addition, is a stalwart supporter of progressive ideas, valiantly calling out reactionary and hackneyed ideations that stand on the way of the canonic belief: that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the Pursuit of Happiness. And being a quality news platform ,the brand , unflappably remains committed to the virtues of global excellence, organically re-accessing itself periodically to keep apace with the capricious nature of the news gathering cycle. BusinessWorld is published by DEADLINE COMMUNICATIONS LTD. Copyright © 2024.