StanChart profit grows 10.9 pc in six months to JuneTuesday August 16 2022
Standard Chartered Bank Kenya has reported a 10.9 percent jump in net profit for the six months to June, helped by an increase in interest income and an increase in foreign exchange earnings.
The Nairobi Securities Exchange-listed bank recorded Sh5.4 billion in profit after tax from Sh4.9 billion posted in a similar period last year.
The growth has been attributed to a 9.9 percent growth in net interest largely from loans, advances and government securities to Sh10.0 billion from Sh9.1 billion.
StanChart also recorded a 33.6 percent rise in foreign currency trading to Sh2.27 billion, helping shore up the non-interest income by 10.9 percent to Sh5.5 billion.
“We have seen healthy business momentum driving top line growth with double-digit growth in net interest income and strong performance in wealth management and financial markets products," said StanChart chief executive Kariuki Ngari.
The strong momentum on income and low expected credit losses mitigated the 18 percent year-on-year increase in costs arising from our continued investment spend in transformational digital capabilities.”
The bank also attributes the growth in non-interest income to the improved performance of its wealth management unit which recorded an income growth of 25 percent compared to the first half of 2021.
Assets under management in this business grew by 12 percent year-on-year on the back of favourable market movements.
StanChart’s net loans and advances increased by 2.0 percent to Sh128.52 billion from the year ended December 2021, with investment in government securities rising by 10.7 percent to Sh100.77 billion over the period.
The bank has however expressed concerns over the election outcome environment and inflations that could slow down activities.
“We have delivered a strong financial performance in the first half of the year. However, external conditions remain difficult to predict, as we have seen geopolitical and macroeconomic volatility that has adversely impacted the global economic environment” Ngari added.
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