Standard Chartered Bank yesterday released their financial results and in a break with the trend that we have seen so far they announced an increase in profits. Their profits experienced a 40% growth to Ksh. 8.7 Billion up from Ksh. 6.2 Billion in 2015.
The bank’s total operating income experienced an 8.8% rise to Ksh. 27.3 Billion. This was largely due to the increase in the income from government securities to Ksh. 10 Billion up from Ksh. 6.9 Billion in 2015. This follows a trend where banks are preferring to buy securities rather than lend to customers after the interest rate cap.
Their total operating expenses fell by 9.8% to Ksh. 14.5 Billion down from Ksh. 16.1 Billion the previous year. This was in a large part due to a 55% drop in the loan loss provision to Ksh. 2.2 Billion. This is despite a 2% increase in the gross non-performing loans from Ksh. 14.7 Billion in 2015 to Ksh. 15 Billion.
Customer deposits grew by 8.5% to Ksh. 186 Billion which gave the bank a good liquidity ratio of 56.93% as compared to 53.74% the previous year. This means that the bank is in a good position to weather the storm in this tough operating environment.
The board recommended a dividend payment of Ksh. 20 per share.