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Standard Chartered Posts Sh4.7bn Half-Year Profit and Declares Fat Dividend

Standard Chartered Bank Kenya registered a 4.4% spike in half year profit, rising from Ksh4.5 billion last year to Ksh4.7 billion as at the end of the first six months.

The Standard Chartered Bank board also announced an interim dividend of Ksh5 for every ordinary share. The interim dividend will be paid out on October 30.

In financials released by the lender on August 26, Standard Chartered Bank Kenya said it was investing in solution offerings to enhance client experience, strengthen information & cyber security, and combat financial crime.

“We have delivered a year-on-year improvement in performance as we continue to pursue sustainable growth for the long-term,” Standard Chartered Bank Kenya said.

The financials release saw Standard Chartered Bank Kenya’s shares on the Nairobi Securities Exchange (NSE) gain, with its share price trading at Ksh197 throughout the day. On Friday, the listed bank had closed at Ksh195.

In addition to its half year profit spike, the bank also registered a net interest income decline of 7% to Ksh12.7 billion. This was attributed to lower average investment in government securities in the first six months of 2019, coupled with declining yields. “Interest income from customer loans and advances remained flat due to lower comparative rates,” the lender noted.

Non-interest income decreased by 2% year-on-year to Ksh4.7 billion which Standard Chartered Bank Kenya said was impacted by a slowdown in corporate finance.

Investments in technology, cybersecurity and staff pushed operating expenses up by 6%, the listed lender said.

Loans and advances to customers meanwhile increased by 1% to Ksh120 billion compared to Ksh119 billion in December 2018. Customer deposits moved up 2% to Ksh229 billion.

Gross non-performing loans plunged 9% to Ksh19.8 billion from the end of 2018.