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StanChart gross profit drops 24.2% to Sh10.1b

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Standard Chartered Bank Kenya has posted Ksh 10.1 billion in pre-tax profit for the year ended 2017 marking a 24.2% decline in its net earnings year-on-year.

The bank’s CEO Lamin Manjang says the drop is attributable to an increase in the non-performing loans portfolio and the financial impact from the interest rate capping law.

In November last year, Standard Chartered Bank issued a profit warning for the full year period ending December 31, 2017, saying it expected a 25% reduction in income compared to 2016.

Net interest income declined by 4% to Ksh 18.7 billion down from Ksh 19.4 billion in 2016.

According to Manjang, the decline was partially mitigated by higher interest income from government securities which increased by 13% as a result of increased volumes invested.

Loans and advances to customers increased by 3% to stand at Ksh 126 billion compared to Ksh 123 billion at the close of 2016.

Customer deposits increased by 14% to reach Ksh 213 billion compared to Ksh 187 billion in 2016.

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The Board is expected to recommend to the shareholders, the payment of a final dividend for the year of Ksh 12.50 for every ordinary share of Ksh 5.

“The Board continues to see many attractive opportunities across the Kenyan economy and remains confident that the Bank’s solid foundation underpinned by strong relationships with our clients, a balance sheet that is highly liquid and well capitalized provides a platform for sustainable growth in the long term,” Manjang said

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