Standard Chartered Kenya (Stanchart) has reported a Ksh. 5.4 Billion net profit for first half of 2022. This represents a 11% rise in profitability from the Ksh. 4.8 Billion which was posted in a similar period last year.
The rise in profitability was on the back of 10% rise in net interest income to Ksh. 10 Billion due to higher asset volumes and an expansion in net interest margin. Non funded income also rose by 11% to hit Ksh. 5.5 Billion this was due to strong performance in Wealth Management and Financial Markets products.
On the other hand, operating expenses were up 18% to Ksh. 7.8 Billion due to higher investment spend as the bank developed its digital capabilities. The loan loss provision declined by 83% to Ksh. 108 Billion due to the reduction in bad loans.
Kariuki Ngari, Chief Executive Officer, had this to say, “We have delivered a strong set of results for the first half of the year with income up 10%. We’ve seen healthy business momentum driving top line growth with double-digit growth in net interest income and strong performance in Wealth Management and Financial Markets products. The strong momentum on income and low expected credit losses mitigated the 18% year-on-year increase in costs arising from our continued investment spend in transformational digital capabilities. Profit before tax is up 11%. We have achieved this by actively supporting our clients in what continues to be a difficult operating environment.”