Standard Chartered Bank Kenya has declared an interim dividend of Sh6 per share amounting to Sh2.27 billion after posting 11.8 percent growth in net profit for the nine months ended September.
The lender said it will make the payment on or about December 28 to ordinary shareholders who will be in the share register as at the close of business on December 14.
Net profit grew from Sh8.71 billion to Sh9.74 billion, mainly supported by a 34.6 percent growth in net interest income to Sh21.2 billion.
The interim dividend matches that of last year when StanChart followed up with a final payout of Sh16 per share.
StanChart Bank Kenya chief executive Kariuki Ngari said the growth in net interest income was supported by the growth in lending, increased short term investments in money markets and improved margins.
“We are proud of our achievements in the nine months to September 2023. However, external conditions remain challenging, as geopolitical and macroeconomic volatility continues to adversely impact the operating environment,” said Mr Ngari.
Non-interest income however dropped by 6.6 percent to Sh8.2 billion while operating expenses rose by 28.4 percent to Sh15.75 billion, slowing the pace of growth in profit when compared with last year when nine-month earnings grew by 38 percent.
Foreign exchange trading income grew by 50 percent to Sh6.3 billion while other fees and commissions rose by 18 percent to Sh3.94 billion but the growth was more than cancelled out by the Sh2.3 billion losses in other income.
The lender said that while non-interest income from client activities rose by 36 percent, the bank suffered a loss from disposal of bond holdings as it sought to invest into higher-yielding customer assets and other short term commercial assets. Mr Ngari attributed the rise in operating costs to inflationary pressure and investment spend on strengthening the bank’s digital capabilities
StanChart increased the provisioning for loan defaults 2.9 times from Sh621 million to Sh1.82 billion, with Mr Ngari saying the rise reflects the current challenging macro-economic environment. Staff costs went up by 20 percent to Sh6.2 billion from Sh5.2 billion, contributing to the rise in operating expenses.
StanChart said assets under management in its wealth management business grew by 21 per cent to Sh160 billion as clients continued to diversify their investment portfolio.
The lender follows Co-operative Bank of Kenya and Equity Group in registering a growth in net profit, albeit at a slowed pace when compared with a similar period last year.
