Standard Chartered Bank Kenya Limited has delivered robust financial results for the first half of 2024, with profit before tax surging by 50 per cent to Sh14.5 billion, according to the bank's latest financial disclosures.

Chief Executive Officer, Kariuki Ngari, expressed confidence in the bank's performance, highlighting significant growth in income streams.

"We delivered a strong set of results for the first half of the year with profit before tax up 50 per cent to Sh14.5 billion," he said.

The bank's operating income rose by 25 per cent, driven by a 19 per cent increase in net interest income, fuelled by volume growth and improved margins, and a 36 per cent rise in non-funded income due to higher transactional volumes.

This success was underpinned by disciplined cost management, resulting in positive cost-income jaws of 16 per cent. Operating expenses, meanwhile, saw a 9 per cent rise, mainly attributable to increased staff costs and continued investments in digital capabilities.

Read More

  1. Standard Chartered unveils strategic investment insights for H2 2024
  2. Standard Chartered highlights major sustainability advances in 2023 report
  3. Patrick Obath bags key International Chamber of Commerce board post

Despite these positive indicators, Standard Chartered experienced a notable decline in customer deposits, which dropped by 19 per cent to Sh276.4 billion.

This decrease was primarily linked to foreign currency revaluation following the strengthening of the Kenya Shilling, as well as a reduction in local currency deposits.

The bank’s net loans and advances to customers also decreased by 8 per cent compared to December 2023, settling at Sh149.3 billion.

However, the bank’s liquidity ratio remains strong at 63.2 per cent, well above the regulatory threshold of 20 per cent, ensuring the institution remains well-capitalised and able to support its clients

In recognition of the strong performance, the bank's board has approved an interim dividend of Sh8.00 per share, payable on or around 8th October 2024. The board remains committed to delivering sustainable returns to shareholders.

Ngari concluded by acknowledging the efforts of the bank's employees and reiterated the bank's focus on client-centric solutions despite the challenging macroeconomic environment.

"We have delivered a strong financial performance in the first half of the year, achieving these results by focusing on our clients and solving for them," he stated, emphasising the importance of staying proactive amid global and local economic headwinds.