Stanchart Bank posts KES19.7Bn Profit with 32pc Dividends

Standard Chartered Bank Kenya Limited has  released its full year results for the year ended 31 December 2023.

Kariuki Ngari, Chief Executive Officer, said:
“We delivered a strong performance in 2023 with Profit Before Tax up 15 per cent year on year to KES 19.7 billion. Our top line growth of 23 per cent benefitted from strong business momentum coupled with improved margins. The continued investment in a strong digital proposition and the impact of inflation led to a 20 per cent rise in operating expenses.

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.

Summary financial performance
All commentary that follows is on comparisons made to the year ended 31 December 2022.
– Operating income increased 23 per cent. Within this:
▪ Net interest income increased 32 per cent due to growth in asset volumes and improved margins.
▪ Non-interest income increased 6 per cent due to growth in transactions volumes, favourable market movements, and robust performance in the Wealth Management business.

– Operating expenses increased 20 per cent reflecting the impact of inflation as well as increased investment spend on digital capabilities.

– Impairment losses on loans and advances increased by KES 2.1 billion, reflecting continued active management of the credit portfolio. Credit quality remained resilient.

The Bank remain alert to a volatile and challenging macro-economic environment.

The balance sheet remained strong amidst a challenging macro-economic environment.
– Loans and advances to customers were up 17 per cent representing increased client demand. Asset quality improved significantly with non-performing loans ratio closing at 9.7%.
– Customer Deposits increased by 23 per cent. Funding quality remains high with current and savings accounts making up 97 per cent of total customer deposits.

Dividend
The Board will be recommending to shareholders at the forthcoming Annual General Meeting, a final dividend payment of KES 23.00 for every ordinary share of KES 5.00. An interim dividend of KES 6.00 was declared and paid in December 2023. This will bring the total dividend for the year to KES 29.00 per ordinary share, which is 32 per cent higher than the 2022 dividend.
Concluding remarks
Stanchart Bank’s consistent delivery and dedicated focus on strategy execution has contributed to a robust performance for 2023. We will continue to make the necessary investments to ensure that our platforms on which our clients depend on are superior in the market.

However, the external pressures persist, and we remain attentive to ensure that we continue protecting the franchise and helping the clients navigate through these challenging times.