Standard Chartered Kenya reported a 43 per cent surge in profit before tax for the financial year 2024, reaching Sh28.2 billion, up from Sh19.6 billion in 2023.

The bank also saw an impressive 46 per cent rise in earnings per share to Sh52.6, as it continued to sharpen its strategic focus on high-growth segments and digital transformation.

Chief Financial Officer Chemutai Murgor noted, “Excellent execution of strategy delivers record financial performance.” This growth was underpinned by a 13 per cent increase in net interest income to Sh33.3 billion, alongside a 40 per cent boost in non-interest income, which climbed to Sh17.4 billion, driven by strong transaction services, wealth solutions, and market activities.

Despite an 8 per cent rise in operating expenses to Sh20.1 billion, the bank’s pre-provision operating profit surged 33 per cent to Sh30.6 billion.

Impairment losses on loans and advances improved significantly, dropping by 30 per cent to Sh2.4 billion, supported by recoveries in corporate and institutional banking.

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The balance sheet remained well-optimised, with total assets standing at Sh384.6 billion, though this represented a 10 per cent decline from 2023.

The loan book stood at Sh151.6 billion, reflecting a 7 per cent drop, primarily due to reduced foreign currency loan utilisation.

However, non-performing assets fell by 29 per cent to Sh12 billion, driving an improvement in the non-performing loan (NPL) ratio to 7.4 per cent, down from 9.7 per cent the previous year.

Customer deposits declined 14 per cent to Sh295.7 billion, impacted by foreign currency fluctuations and a shift towards alternative investments.

Despite this, the bank maintained a strong capital position, with a capital adequacy ratio of 19.55 per cent and a liquidity ratio of 67.6 per cent.

Shareholders were the biggest beneficiaries of the strong performance, with the board recommending a final dividend of Sh37 per share.

Together with an interim dividend of Sh8 paid in October 2024, this brings the total dividend for the year to Sh45 per share, marking a 55 per cent increase from 2023.

“The Board will be recommending to the shareholders at the forthcoming Annual General Meeting, a final dividend of Sh37.00 per ordinary share,” the bank stated.