Money Markets
StanChart defies harsh economy to post profit growth
Standard Chartered chief executive officer, Richard Etemesi. The bank reported a 43 per cent jump in pre-tax profit to Sh6.7 billion from Sh4.7 billion recorded in 2008. Photo/WILLIAM OERI
Posted Friday, March 5 2010 at 00:00
In 2008, the bank interest expense edged upward by 21 per cent to Sh1.9 billion.
The bank overall expenses grew by three per cent to Sh5.2 billion.
Mr. Etemesi said the challenge banks face is existence of a mismatch between short-term deposits and demand for long-term debt.
“Businesses are looking for long-term funds on one hand while on the other hand we are mobilising short-term deposits affecting our pricing of services in terms of interest payment on deposits and interest charge levied on funds.”
To remain at the top, Mr. Gichohi says, the bank can take advantage of new opportunities of reaching out to more customers through the use of agency banking model.
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