Standard Chartered Bank Kenya has reported an impressive 39.4% rise in profitability for the first quarter of 2024, with net income increasing to Sh5.6 billion from Sh4 billion previously. The growth was driven by higher income from loans and transactions, reflecting the bank’s robust financial performance amid challenging economic conditions.
The bank’s total operating income surged by 21.4% to Sh13 billion, up from Sh10.7 billion, with non-interest funded income growing by 23.6% to Sh4.7 billion. This growth was largely supported by improved earnings from other fees and commissions, as well as higher forex trading income during the quarter.
Standard Chartered Bank Kenya also saw a notable improvement in net interest income, which rose by 20.5% to Sh8.2 billion from Sh6.8 billion. Total interest income increased by 26.6% to Sh9.5 billion, driven by revenues from loans and advances reaching Sh5.7 billion, up from Sh3.9 billion last year, indicating improved lending margins.
Despite rising interest rates, the bank managed to control its costs, with total interest expenses rising by 71.4% to Sh1.2 billion. Non-interest related expenses increased marginally by 5.8% to Sh5.4 billion, primarily due to a slowdown in loan-loss provisioning costs, which decreased to Sh547.9 million from Sh790.9 million.
The reduction in loan-loss provisions was supported by a decrease in gross non-performing loans, which fell to Sh16.5 billion from Sh22.5 billion previously. During the quarter, the bank expanded its net loans and advances to customers by 11.9% to Sh153.5 billion, while customer deposits remained stable at Sh306 billion.
Standard Chartered’s earnings per share strengthened to Sh14.42 from Sh10.55 a year ago, underscoring the bank’s improved profitability and strong financial health. The bank’s performance reflects its resilience and strategic management amidst a competitive banking landscape.
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