Standard Chartered Bank Kenya has released its results for the year ended 31st December 2020. The bank reported a reduced Ksh. 5.4 billion net profit in 2020 as compared to Ksh. 8.2 billion net profit in 2019.
Speaking at the release, Kariuki Ngari, CEO Standard Chartered Bank Kenya said, “We are weathering the health crisis well and our strategic transformation continues to progress. We remain strong and profitable, although earnings in 2020 were clearly impacted by higher provisions and reduced economic activity, in each case the result of COVID-19. Overall, income declined as did our profit for the year, notwithstanding tight control of expenses. The actions taken in recent years to improve the quality of our balance sheet sheltered us from some of the worst effects of the pandemic.”
Key highlights from the report include
- Net interest income declined 2% due to lower interest rates coupled with pandemic relief measures.
- Non- interest income decreased 10% with reduced volumes more than offsetting a particularly strong performance in Financial Markets.
- Operating expenses increased by 1% with the impact of COVID-19 resulting in a net reduced spend on travel and entertainment and other discretionary costs.
- Loan impairment increased by Ksh. 3.3 billion to Ksh. 3.88 billion.
Having made substantial provisions against expected credit losses during the year, conditions have stabilised somewhat in 2021. However, despite these encouraging signs, the credit risks facing the Bank are likely to remain elevated during a projected difficult economic recovery ahead.
On 19 June 2020, the bank’s Board decided to vary the recommendation to pay a final dividend for 2019 of Ksh. 15 per ordinary share to Ksh. 7.50 per ordinary share. This decision enabled the bank to provide support to individuals, businesses and our communities while keeping our staff safe, and invest to transform the business for the long term.
The bank’s significant investment into core digital capabilities in recent years has borne fruit during the pandemic, with up to three quarters of our staff working remotely. The investments they continue to make to enhance our digital capabilities have enabled them to continue serving their clients safely and seamlessly despite the disruption occasioned by the pandemic.
The bank is supported by over 100 Chartered Institute of Securities and Investment (CISI) certified wealth advisors delivering personalised investment advice to their clients. Its Wealth Management business achieved a remarkable milestone of Assets Under Management (AuM) of Ksh. 129 billion in 2020 reflecting a 90% growth compared to 2019.