Standard Chartered Bank Kenya Limited has released its results for the nine months ended 30 September 2022.

Kariuki Ngari, Chief Executive Officer, said:

“We have delivered a strong performance in the nine months ended 30 September 2022 with profit before tax increasing 38% year on year. Healthy business momentum continues to drive growth with income up 10%. Costs increased 9% because of inflationary pressure as well as investment spend, whilst expected credit losses have significantly reduced year-on-year. We have achieved this performance by actively supporting our clients in an increasingly unpredictable operating environment. I am also pleased to announce that the Board approved the payment of an interim dividend of KShs 6.00 to our ordinary shareholders.”

Summary financial performance

• Income increased 10% due to asset volumes growth, expansion in net interest margins and favourable market movements.
• Operating expenses were up 9% reflecting the impact of inflation, increase in amortisation charges as well as increased investment spend on digital capabilities.
• Loan impairment declined by 77% benefitting from improved delinquencies as the economic environment continues to rebound.

Asset quality remained stable however we continue to be alert to a volatile external environment.

• Net customer loans and advances were up 8% reflecting the recovery of our clients’ businesses.  
• Customer deposits continued to grow with funding quality remaining high – current and savings accounts making up 93% of total customer deposits.

Dividend

The directors are pleased to announce the payment of an interim dividend of KShs 6.00 for every ordinary share of KShs 5.00. The Board recognises the importance of dividends to shareholders and remains committed to sustainable shareholder returns.

Concluding remarks

We continue making inroads in our sustainability agenda and are making good progress. We will continue to focus on executing our strategy, investing in areas of our competitive strength, and supporting our clients and communities.

Also Read: Standard Chartered Bank Kenya Half Year 2022 Results

The external environment remains challenging although with the steady drop of oil prices, inflationary pressure might abate in the short term. The impact of Russian invasion of Ukraine continues to cast a dark cloud on the Global economy..

Financial performance summary

						2022 vs 2021
	30.9.2022		30.9.2021			Better/(Worse)
	KShs million		KShs million			%
Net interest income	15,784		14,712			7
Non funded income	8,778		7,560			16
Total operating income	24,562		22,272			10
Operating expenses	(11,646)		(10,695)			(9)
Loan impairment	(621)		(2,681)			77
Profit before taxation	12,295		8,896			38
Taxation	(3,582)		(2,541)			(41)
Profit after taxation	8,713		6,355			37
						Increase/
	30.9.2022		31.12.2021			(Decrease)
	KShs million		KShs million			%
Balance Sheet
Loans and advances to customers	136,072		125,975			8
Customer deposits	286,074		265,469			8
Loans to deposits ratio	48%		47%
Capital
Core capital	41,481		40,822
Core capital ratio	15.42%		15.53%
Total capital	47,485		46,670
Total capital ratio	17.66%		17.76%

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