The lender launched the wealth management, targeting customers looking for professional investment advice.
The unit ended 2021 with Sh131 billion in assets under management, representing a 2.1 percent growth from Sh129 billion in 2020.
The lender said that it leaned on its digital platform to expand the reach of the wealth unit, which offers portfolio management, fixed income investments, bancassurance and lending using the invested amount as collateral (wealth lending).
Standard Chartered Bank Kenya’s #ticker:SCBK income from its wealth management unit grew by 21 percent last year to Sh3.16 billion, defying slower growth in assets under management in the period.
The lender launched the wealth management, targeting customers looking for professional investment advice.
The unit ended 2021 with Sh131 billion in assets under management, representing a 2.1 percent growth from Sh129 billion in 2020.
The assets have grown at an annual compound rate of 37.95 percent from Sh19 billion in 2016. Expansion of the wealth division offers StanChart an opportunity to grow and diversify earnings, with the business offering more stable revenue.
It also serves to build synergies with the banking operations, with the institution having catered to affluent clients for decades.
The lender said that it leaned on its digital platform to expand the reach of the wealth unit, which offers portfolio management, fixed income investments, bancassurance and lending using the invested amount as collateral (wealth lending).
“We continue to diversify our digitally distributed wealth product offerings. We recently launched the SC Shilingi Funds, a money market fund with a minimum entry of Sh1,000 to drive financial inclusion of the mass retail segment,” the lender told the Business Daily.
The wealth management business contributed a significant part of the bank’s non-interest income, which rose 25 percent to Sh10.4 billion last year.
This helped make up for a five percent decline in interest income to Sh22.2 billion as the bank reduced its investment in government debt securities.
Its net profit for the year grew by 66.2 per cent to Sh9 billion in the period.
An increasing number of wealthy Kenyans are turning to professional fund managers to look after their money, banking on professional expertise to cut risk and identify the best investment options.
