Standard Chartered Bank Kenya has reported a notable 39.4 per cent increase in its net profits for the first quarter ending March 2024.

The bank's net earnings rose to Sh5.6 billion, compared to Sh4 billion during the same period last year, primarily driven by increased income from loans and transactions.

The bank’s total operating income reached Sh13 billion, marking a 21.4 per cent increase from Sh10.7 billion.

This growth was largely due to a 23.6 per cent rise in non-interest income, which totalled Sh4.7 billion.

Higher earnings from fees, commissions, and foreign exchange trading were key contributors to this increase.

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Net interest income also saw a significant boost, climbing 20.5 per cent to Sh8.2 billion from Sh6.8 billion, thanks to expanded lending revenues.

The bank’s total interest income jumped by 26.6 per cent to Sh9.5 billion from Sh7.5 billion, with loan and advance revenues increasing to Sh5.7 billion from Sh3.9 billion, reflecting better lending margins.

Despite the revenue growth, Standard Chartered faced increased costs.

Total interest expenses rose by 71.4 per cent to Sh1.2 billion from Sh701 million in March 2023.

The bank spent Sh1 billion on term deposit coverage, up from Sh654 million the previous year.

Non-interest expenses also grew, reaching Sh5.4 billion, a 5.8 per cent increase from Sh5.1 billion last year.

This moderate rise in expenses was due to a reduction in loan-loss provisioning costs, which dropped to Sh547.9 million from Sh790.9 million in March 2024.

The lower provisions were a result of a decline in gross non-performing loans, which fell to Sh16.5 billion from Sh22.5 billion.

Throughout the quarter, the bank expanded its net loans and advances to customers by 11.9 per cent, bringing the total to Sh153.5 billion from Sh137.1 billion.

Customer deposits remained stable at Sh306 billion, up slightly from Sh302.9 billion the previous year.

Standard Chartered's robust performance is further reflected in its strengthened earnings per share, which rose to Sh14.42 from Sh10.55 a year ago.

This positive financial outlook paints a promising picture for the bank's future endeavours in the Kenyan market