Standard Chartered Bank (Stanchart) has reported a net profit of Ksh. 6.9 Billion for the Half Year 2023, this is 28% increase as compared to Ksh. 5.4 Billion reported in a similar period last year.
The rise in profitability was on the back of 34% rise the total operating income to Ksh. 20.8 Billion. This was a result of a 38% rise in net interest income to Ksh. 13.8 Billion. Non funded income also rose by 27% to hit Ksh. 7 Billion. According to the bank, this was due to strong performance across wealth management, financial markets and retail products.
On the other hand, operating expenses rose by 17% to hit Ksh. 9.1 Billion due to increased staff costs and continued investment spend into transformational digital initiatives. Loan impairment increased by a record 1785% to Ksh. 2 Billion due to a volatile and challenging macro-economic environment.
Net loans and advances to customers increased 4 per cent from 31 December 2022 to Ksh. 145 billion. Customer deposits recorded a 2 per cent increase from 31 December 2022 to Ksh. 283 Billion.
Kariuki Ngari, Standard Chartered Bank Chief Executive Officer, said: “We are pleased to release our first half of the year financial results which reflects a strong profit before tax growth of 27 per cent. This result has been delivered by a strong top line growth of 34 per cent from a stellar performance by both businesses. Cost growth has come in at 17 per cent resulting in a healthy cost income ratio of 17 per cent. Loan impairment charge has increased by KES 1.9 billion reflecting a volatile and challenging micro-economic environment. Asset quality remained resilient whilst our deposit growth has continued in our current and savings accounts. The external environment remains challenging, but we remain steadfast in supporting our clients through this period.”