StanChart Kenya Profit Jumps 63% on Lending, Fees Growth

: Standard Chartered Kenya reports a 63% profit surge to KSh 13.8B, driven by
higher lending, fee income, and strategic investments in digital banking
solutions.

Standard Chartered Bank Kenya reported a 63% rise in net profit for the nine months
ending September 30, 2024, reaching KSh 13.8 billion.

This growth demonstrates how lending and fee-based income streams drive robust
performance, even amid inflationary pressures and a volatile economic environment.

Key Drivers of Growth

The bank boosted its net interest income by 32% to KSh 29.3 billion, driven by increased
lending activity.

Fees and commissions raised non-interest income by 6% to KSh 12.4 billion, highlighting more
active customer engagement.

CEO Kariuki Ngari stressed the importance of managing the credit portfolio while maintaining
robust client support.

“We remain committed to actively managing our credit portfolio and
supporting our clients in a challenging environment.”

Rising Costs Amid Strategic Investments

Operating expenses climbed 20%, from KSh 15.6 billion to KSh 18.7 billion, driven by
inflation, currency depreciation, and targeted investments in digital banking solutions.

The bank continues to prioritise its transformation strategy, which is critical for
maintaining competitiveness.

Shareholder Rewards

StanChart increased its dividend payout to KSh 10.96 billion, representing 79.4% of net
profit, up from KSh 8.31 billion in 2023.

This move underscores the bank’s commitment to shareholder value. Commenting on
the payout, Ngari added:

“We are pleased to sustain strong returns for our shareholders while driving
innovation and supporting economic growth.”

Focus on Financial Stability

The bank reported a liquidity ratio of 63.2%, significantly exceeding the regulatory
minimum of 20%.

This robust liquidity positions StanChart as a stable player in Kenya’s financial sector,
even in the face of macroeconomic headwinds​.

Outlook

StanChart’s strategic investments in digital banking and a customer-focused approach
are expected to drive further growth.

With a sound financial base and ongoing innovation, the bank is poised to capitalise on
emerging opportunities in Kenya’s banking sector.

This performance cements Standard Chartered Kenya’s position as a leader in the
industry, demonstrating resilience and adaptability in a dynamic economic landscape.