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Standard Chartered’s Q1 Profits Up 16% To Ksh2.8 Billion

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Standard Chartered Bank Kenya Limited’s profit before tax grew 16 percent year-on-year from Ksh3.4 billion to Ksh3.9 billion with strong underlying business momentum.

Profit after tax grew by the same margin, from Ksh2.4 billion in the first quarter of 2021 to Ksh2.8 billion in the first quarter of 2022.

Income increased by five percent to Ksh7.4 billion from Ksh7.1 in 2021, with a strong performance in net interest income (Ksh4.9 billion), financial markets and wealth management.

The Bank remains well capitalised and highly liquid with a total capital ratio of 17.62 percent and a liquidity ratio of 71.56 percent.

“Our first quarter performance was strong despite volatile and challenging market conditions.  Expenses increased nine percent mainly due to digital investments as we continue to transform how we serve our clients. Asset quality remained resilient in the first quarter however we continue to remain alert to the challenging external environment,” Kariuki Ngari, Chief Executive Officer, said.

Non-interest income was flat at Ksh2.5 billion with continued positive momentum in wealth management and financial markets offset by lower fee income.

Loan impairment declined by 121 percent reflecting the impact of a release in management overlays, primarily relating to COVID-19.

Net loans and advances to customers increased two percent to Ksh128.1 billion from December 31, 2021.

Customer deposits remained flat from December 31, 2021, at Ksh265 billion. Funding quality remains high with current and savings accounts making up 92 percent of total customer deposits.

The liquidity ratio at 72 percent remains well above the regulatory threshold of 20 percent.

The total capital ratio of 17.62 percent is above the regulatory minimum and within the capital risk appetite.

“The start to 2022 has been strong, however, we continue to remain alert to the challenging external environment which has been elevated by Russian invasion of Ukraine, continuing cases of COVID-19 in China which is leading to logistical shipping challenges thus causing accelerated inflation globally. Against this backdrop, we will continue to focus on executing our strategy whilst pursuing sustainable growth,” the lender said.

Read: Standard Group Gives Staff Pay Slips Without Salary

>>> Standard Chartered To Sell Its Ksh222 Million Iconic Building In Mombasa

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BT Reporter
BT Reporterhttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
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