Standard Chartered Bank Kenya reported a 15.6 percent jump in net profit in the three months to March, driven by loan loss provisions declining by more than two folds and expanded net interest income from loans and advances.
The lender recorded Sh2.76 billion net earnings in quarter one compared to Sh2.39 billion in the same period in 2021.
The profit growth was attributed to a reduction in provisioning for loan losses by 120.8 percent from Sh413.21 million, signalling that the loan book may perform better in the year.
Net interest income from loans and advances grew by 7.2 percent to Sh4.92 billion.
“Our first-quarter performance was strong despite volatile and challenging market conditions,” said StanChart chief executive Kariuki Ngari.
Operating income increased by 4.7 percent to Sh7.41 billion from significant growth in net interest income, financial markets and its wealth management unit.
However, the performance was subdued as non-funded income remained flat due to lower revenues from fees and commissions on loans and transactions.
Net loans and advances to customers increased 8.7 percent to Sh128.09 billion compared to the previous period.
“The start to 2022 has been strong, however, we continue to remain alert to the challenging external environment which has been elevated by Russian invasion of Ukraine, continuing cases of Covid-19 in China which is leading to logistical shipping challenges thus causing accelerated inflation globally,” he added.
