Standard Chartered Bank Kenya Limited has released its results for 30 June 2023 today.
Kariuki Ngari, Chief Executive Officer, said:
“We are pleased to release our financial results for the first half of the year, which reflect a substantial profit before tax growth of 27 per cent. This result has been delivered by a robust top-line growth of 34 per cent from a stellar performance by both businesses. Cost growth has come in at 17 per cent, resulting in a healthy cost-income ratio of 17 per cent. The loan impairment charge has increased by KES 1.9 billion, reflecting a volatile and challenging macroeconomic environment”.
Asset quality remained resilient whilst our deposit growth has continued in our current and savings accounts. The external environment remains challenging, but we steadfastly support our clients through this period.
Summary financial performance
- Operating income increased 34 per cent, driven by solid performance across our Wealth Management, Financial Markets and Retail products;
- Net interest income increased 38% due to volume growth and improved margins.
- Non-interest income registered 27 per cent growth from increased transactional volumes and margins.
- Operating expenses were up 17 per cent from increased staff costs and continued investment spending into transformational digital initiatives.
- Loan impairment charges increased year-on-year, reflecting a volatile and challenging macroeconomic environment.
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The balance sheet remains strong and highly liquid.
- Net loans and customer advances increased 4% from 31 December 2022 to KES 145 billion. Asset quality remained stable.
- Customer deposits recorded a 2 per cent increase from 31 December 2022. Funding quality remains high, with current and savings accounts making up to 95 per cent of total customer deposits.
- The liquidity ratio at 62.8 per cent remains well above the regulatory threshold of 20 per cent.
- A total capital ratio of 17.26 per cent is above the regulatory minimum and within our capital risk appetite.
Concluding remarks
We have delivered a solid financial performance in the first half of the year, and we have achieved these results by focusing on our clients, supporting our colleagues and staying true to our brand promise, here for good. We are conscious of our external macroeconomic headwinds, both global and local.
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With inflation starting to cool off and the measures being taken by monetary and fiscal authorities to stabilise our economy, we are optimistic about a better external environment in the second half of the year.
We will remain focused on executing our strategy on the four pillars of the network: affluent, mass retail and sustainability.
