Standard Chartered Bank Kenya has recorded a 15 per cent increase in its pre-tax profit to Sh19.7 billion for the financial year ended December 31, 2023.

In the financial results released on Tuesday, Standard Chartered Bank Kenya revealed that its operating income also went up 23 per cent during the said period under review.

The firm, which is listed on the London and Hong Kong stock exchanges, also witnessed a 32 per cent rise in its net interest income due to due to growth in asset volumes and margins.

Its non-interest income also grew 6 per cent as it realized improvements in its transactions, market, as well as a wealth management business that realized some significant growth.

Similarly, Standard Chartered Bank’s operating expenses grew by 20 per cent as it absorbed the shocks of inflation while also investing more money to strengthen its digital products.

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“Our top line growth of 23 per cent benefitted from strong business momentum coupled with improved margins,” stated Standard Chartered Bank Kenya CEO Kariuki Ngari.

He added: “Loans and advances were up 17 per cent, while deposits grew by 23 per cent, demonstrating that we continue to provide value to our clients.”

However, the financial institution’s impairment losses on loans and advances went up by Sh2.1 billion as it took steps to manage its credit portfolio in a tough macro-economic time.

At the same time, loans and advances processed by Standard Chartered Bank Kenya grew by 17 per cent as the bank’s non-performing loans ratio closed the fiscal year at 9.7 per cent.

During the period in review, the bank’s customer Deposits increased by 23 per cent as its current and savings accounts accounted for 97 per cent of its total customer deposits.

The bank’s Board will be recommending to shareholders at the forthcoming Annual General Meeting, a final dividend payment of Sh23 per ordinary share of Sh5.

An interim dividend of Sh6 was also declared and paid in December 2023 raising the total dividend for 2023 to Sh29 per ordinary share, which is a 32 per cent increase from 2022.

“Our consistent delivery and dedicated focus on strategy execution has contributed to a robust performance for 2023,” the CEO noted.

He went on: “We will continue to make the necessary investments to ensure that our platforms on which our clients depend on are superior in the market.”