Standard Chartered Bank Kenya has delivered a solid performance for the third quarter of 2024, with profit before tax rising by 64 per cent to 22.5 billion driven by strong revenue growth and effective cost management.

The results reflect a continued upward trajectory despite challenges in the broader macroeconomic environment.

The bank's operating income surged by 33 per cent bolstered by a 17 per cent increase in net interest income and a remarkable 74 per cent rise in non-interest income.

However, operating expenses rose modestly by 5 per cent and loan impairment charges climbed by 7 per cent year-on-year.

The bank's balance sheet remains robust, with a liquidity ratio of 65 per cent far exceeding the regulatory minimum of 20 per cent and a strong total capital ratio of 21 per cent

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Kariuki Ngari, Chief Executive Officer of Standard Chartered Bank Kenya, commented on the results, saying, “We have delivered a strong performance in the third quarter with profit before tax up 64 per cent driven by strong topline growth, and well managed costs.”

Despite the growth in impairment charges, the bank’s overall financial health remains strong, and it continues to position itself well for future opportunities.

Ngari expressed optimism as the bank enters the final quarter of the year, citing favourable economic indicators.

“We are optimistic as we get into the fourth quarter of an improving macro environment characterised by declining interest rates, falling inflation and stable currency," Ngari stated.

"We are well positioned to help our clients through this phase and are confident of a strong finish to the year.”

In terms of specific financial figures, Standard Chartered's interest income increased by 24 per cent to Sh29,050 million, and non-funded income grew by 74 per cent to Sh14,230 million.

However, loan impairment charges increased to Sh1,958 million from Sh1,822 million.

The bank’s profit after tax saw a 63 per cent rise to Sh15,846 million, up from Sh9,738 million in the same period last year.

On the balance sheet front, customer loans and advances saw a 7 per cent decrease, falling to Sh151,282 million, while customer deposits dropped by 17 per cent to Sh284,417 million.

The bank’s capital position remains solid, with core capital increasing by 12 per cent to Sh57,570 million, resulting in a core capital ratio of 20.94 per cent

Despite a challenging macroeconomic backdrop, Standard Chartered’s strong financial performance reflects its resilience and ability to support clients in both growth and adverse market conditions.