Standard Chartered Bank Kenya Limited today released its results for the year ended 31 December 2022.
Kariuki Ngari, Chief Executive Officer, said:
“We have delivered a strong set of results in 2022, with profit before tax up by 36 per cent, with business momentum driving top-line growth of 16 per cent. Our Wealth Management, Transaction Banking and Financial Markets products performed strongly.
I am particularly pleased with our discipline around expenses that helped us navigate the inflationary pressures of 2022 but still allowing us room to invest in our digital capabilities. Our costs were up by 8 per cent in comparison to the double-digit growth in income of 16 per cent, enabling us to deliver a strong income-to-cost jaws of 8 per cent.”
Summary financial performance
All commentary that follows is in comparison to the year ended 31 December 2021.
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The operating income increased 16 percent. Within this:
Net interest income increased 18 per cent due to asset volumes growth and expansion in net interest margins as interest rates rose.
Non-interest income increased 13 per cent due to favourable market movements and strong performance in the Wealth Management business.
Operating expenses increased 8 per cent reflecting the impact of inflation as well as increased investment spend on digital capabilities.
Underlying credit metrics improved as the economic conditions stabilised and impairment losses declined by 38 per cent.
Asset quality remained stable. However, we continue to be alert to a volatile, unpredictable, and challenging external environment.
Loans and advances to customers was up 11 per cent reflecting increased business activities by our clients.
Deposits from customers continued to grow, up by 5 per cent and funding quality remains high with current and savings accounts making up 93 per cent of total customer deposits.
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Concluding remarks
We had a strong business momentum in 2022 and we are well positioned to navigate an uncertain external environment in 2023, which is likely to remain complex due to global headwinds. The Bank will continue to focus on executing its strategy, invest in areas of competitive strength, support and protect the wellbeing of our clients, colleagues, and communities.
Finally, I acknowledge the dedication of my colleagues whose deep expertise combined with commitment has delivered seamless service to our customers and communities, bringing to life our brand promise to be Here for Good.