Standard Chartered Kenya investment in Govt securities boosts profit to Sh8b
NAIROBI, Kenya, Mar 22 – Standard Chartered Bank Kenya has announced a profit of Sh8 billion for the year ending December 2018, up from Sh6.9 billion in 2017.
Interest income increased by 2 per cent to Sh26.9 billion driven by income from investments in government securities which were up 10 per cent to reach Sh12.5 billion.
In the same period, interest income from customer loans and advances however decreased by 3 per cent to Sh13.1 billion due to lower average balances coupled with re-pricing in line with the Central Bank Rate.
“We are investing in exciting new digital and other transformative initiatives, and our strengthened risk discipline is paying off. We are determined to drive commerce and help our clients achieve prosperity in a sustainable manner.’’ Kariuki Ngari, Chief Executive Officer.
Non-interest income increased by 5 per cent to Sh 9.2 billion compared to 2017 from sustained momentum in investments and foreign exchange.
“Operating expenses increased by 13 per cent as we accelerated investments in technology to support our digital agenda,” added Ngari.
Customer deposits were up 5 per cent to reach Sj224 billion compared to Sh213 billion in December 2017 from deepening existing client relationships and new mandates.
Gross non-performing loans went up by 23 percent to hit Sh21.7 billion.
The Bank’s Board recommended payment of a final dividend for the year of Sh14.00 for every ordinary share of Sh5.00.
This, in addition to the interim dividend paid in October 2018 of Sh5.00 for every ordinary share of Sh5.00, brings the total dividend to Sh19.00 for every ordinary share of Sh5.00.